Landlords held back in Q2 2011

Author: David Whittaker Posted on: 26 July 2011

While the buy to let market has been key to underpinning lending activity over the first half of 2011, product pricing has been the one reservation that held landlords back slightly in Q2.

Improving competition between lenders has caused a reduction in margin over the past two months, though, which has started to create genuine positive cash-flow on properties with supporting debt. If this is maintained into the autumn, which seems likely with the expected entry of Santander and Yorkshire into this space, then landlords will become more acquisitive on BTL property and the lending figures should reflect this healthy pick-up.