Landlords 'unable to expand property portfolios'

Posted: 20 Jan 2010 10:12:23 GMT

UK landlords are finding it increasingly difficult to expand their property portfolios due to a lack of mortgage finance availability, it has been suggested.

New research from Paragon Mortgages reveals that just ten per cent of those hoping to purchase a buy-to-let property will be able to do so because of the difficulty in securing mortgage finance.

Some 67 per cent of those questioned state that it was harder to obtain a home loan in the fourth quarter of 2009, compared with the previous three months.

John Heron, managing director of Paragon Mortgages, describes the situation as "frustrating".

He adds: "It is ironic that the criteria employed by most lenders favours inexperienced landlords over those with proven track records in residential property investment and management."

Alan Ward, chairman of the Residential Landlords Association, recently stated that owning and managing buy-to-let properties is an increasingly difficult task as landlords are being continually "harassed" by central government targets and regulations.

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