Buy-to-let market 'remains strong'

Posted: 12 Jun 2008 13:12:17 GMT

Buy-to-let investors are benefiting from tougher lending criterion which is pushing first-time buyers off the property ladder and into the rental market.

Buy-to-let investors are benefiting from tougher lending criterion which is pushing first-time buyers off the property ladder and into the rental market.

That is according to the National Landlords Association (NLA) which has suggested that the "fundamentals" of the market "remain strong".

Commenting on the buy-to-let mortgage market, NLA chairman David Salusbury said: "We believe now is a good time for the professional portfolio landlord, many of whom will be benefiting from increased demand and rising rents."

Rental yield figures support the NLA's comments. The Paragon Buy-To-Let Index showed that average UK rents had increased by 13.8 per cent in the 12 months to April 2008.

The NLA admitted that availability of mortgage deals for landlords is an issue and suggested buy-to-let investors keep in "close contact with their mortgage broker".

Landlords can also use the NLA's sourcing and quotation system and their cashback scheme for members that find deals through them should "go some way to helping reduce the costs of obtaining a new loan advance."

This incentive may be welcome news to landlords as latest research from financial advice site moneyexpert.com has revealed that there has been a 14 times rise in mortgage application fees in the last 18 months.

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