New buy-to-let landscape noted

Posted: 05 May 2009 11:00:00 GMT

The choice of lenders for those joining the buy-to-let market this year has dropped, compared to 18 months ago.

Financial website MoneyNet noted the current property investment market in the UK is "almost unrecognisable" to the one that existed in September 2007.

However, the portal still had words of encouragement for landlords planning on joining the sector.

In a statement, MoneyNet said that property investment can still end up being a "profitable medium to long-term form of investment" - there is now just a "more realistic financing requirement".

"Unfortunately it was a decade of booming house prices and a 'me too' mentality to make a quick buck that has seen both borrowers and lenders get their fingers severely burnt," the site claimed.

Would-be landlords now have around 30 lenders to choose from, while 18 months ago this figure was apparently closer to 100.

Indeed, the British Bankers' Association recently announced that gross mortgage lending in March 2009 was down £0.3 billion from February's seasonally-adjusted figure of £9.2 billion.


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