Buy-to-let landlords 'being held back from expanding portfolio'

Posted: 16 Apr 2010 09:01:55 GMT

Buy-to-let landlords are being held back from expanding their property portfolios because of a lack of mortgage availability, it has been claimed.

Vincenzo Rampulla, public affairs officer at the National Landlords Association, says due to the lack of home loan finance it is unsurprising that many landlords are unable to add to their portfolio.

"Until lenders release their purse strings we will see many landlords unable to make the most of low interest rates and increased tenant demand," he states.

Mr Rampulla's comments follow new data from Paragon Mortgages, which shows that just 12 per cent of buy-to-let landlords are planning to purchase an investment property in the next 12 months.

This is despite 36 per cent of those questioned stating they expect tenant demand for rental housing to increase over the next year.

A recent study undertaken by the Association of Residential Lettings Agents revealed that 58 per cent of respondents think the biggest issue facing the rental sector is the lack of buy-to-let stock.

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