Lack of buy-to-let mortgages 'holding back investors'

Date:Tuesday 28th July 2009
Author: Max Freedman

Landlords are being prevented from purchasing properties due to a lack of available buy-to-let mortgages, according to Paragon Mortgages.

In its latest PRS Trends Report, it suggested that 43 per cent of landlords questioned reported that a lack of finance is the main obstacle preventing them from expanding their property portfolios.

The firm's managing director John Heron claimed that while such investors want to purchase new properties because they recognise that rental yields are rising, lenders are not willing or able to stump up the necessary funding.

Commenting on the issue, he said: "Until more is done to increase lenders' access to funding, we could see the private rented sector enter into a period of stagnation because landlords are struggling to buy."

Meanwhile, figures released recently by the National Association of Estate Agents suggested that 58 per cent of consumers polled stated a belief that mortgage providers must up their lending if the UK is to recover from its current property market slump.