Lack of mortgages holding back landlords

by Gemma Roskell

Landlords looking to expand their buy-to-let property portfolios are struggling because of the lack of available mortgage finance.

This is the view of Vincenzo Rampulla, public affairs officer at the National Landlords Association, who said mortgages are still hard to come by, even though the economy is now in recovery.

"Unless 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.

Indeed, Mr Rampulla explained that because more so-called accidental landlords - those who were unable to sell their property during the downturn so were forced to let it out - are now leaving the market, there are less available properties.

This is causing demand for rented accommodation to increase, opening up new opportunities for those landlords that are able to purchase more property.

Research carried out recently by Paragon Mortgages showed that 12 per cent of landlords plan to expand their buy-to-let property portfolios over the next three months.

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Published on: April 22, 2010

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