Buy to let landlords 'being held back by mortgage availability'

16 April 2010

Posted by Gavin Elley

Many landlords are being prevented from expanding their property portfolios by the lack of buy to let mortgages on the market, it has been suggested.

Commenting on data released earlier in the week indicating only 12 per cent of landlords are intending to invest in new property over the next quarter, public affairs officer for the National Landlords Association Vincenzo Rampulla said this trend is unsurprising.

"Until lenders release their purse strings we will see many landlords unable to make the most of low interest rates and increased tenant demand," he remarked.

He explained a growing number of people are seeking rented accommodation at present, as an increase in the amount of accidental landlords leaving the market has resulted in fewer properties being available.

This is "leading to an increase in tenant demand", Mr Rampulla noted.

Research conducted by the Association of Residential Letting Agents late last month showed the majority (58 per cent) of landlords see the shortage of available buy to let property as the biggest problem facing the rental sector at present.

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