Lack of buy-to-let finance constricts market
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Half of buy-to-let landlords want to buy more residential property to rent out privately, but are being constrained by the lack of available mortgage finance.
A survey conducted by LSL Property Services, which owns the UK's largestlettings agent network, including national chains Your Move and Reeds Rains, revealed that 49% believe the conditions are currently right for them to expand their property portfolios.
However, only 27% said they will be able to access mortgage funds in the next year, because the supply of deals is so restricted and criteria are so stringent.
In the past, buy-to-let investors could get a mortgage from one of dozens of lenders with a deposit of 15%, and interest rates were very competitive.
Today only a handful of lenders are operating in this sector, most demand a 35% deposit and the interest rates on offer are relatively high.
David Brown, commercial director of LSL Property Services, said:
“2009 saw the buy-to-let market return as a viable investment. Landlords recognise this, despite the rough ride they have had to endure over the last couple of years.
