White issues warning on rental income

DAVY economist Rossa White has warned the rise in property prices is making it increasingly difficult for investors to repay high mortgage borrowings from rental income alone.

In a review of the buy-to-let market, he said the sector has been gripped by a "boundless optimism".

That exuberance is distorting people's perception of what the rental market can deliver in the medium to long term, he said.