Landlords 'won't find it easier' to obtain finance

Posted: 22 Feb 2011 12:57:15 GMT

Finding finance for properties is unlikely to get any easier for landlords during 2011, according to an expert in the sector.

Landlords are unlikely to find it any easier to obtain finance to purchase more homes and expand their portfolio during 2011, according to one expert.

Figures released by Paragon have shown demand for privately rented property rose to a two-year high during the final three months of 2010.

However, David Lawrenson, an expert on the private rented sector at property investment consultancy LettingFocus.com, said the problems facing the banking sector could adversely affect landlords' chances of getting funding for new houses.

"Some of the banks that have been bailed out by the government will have to pay back some of the money. I certainly don't think it is going to get any easier," he explained.

Mr Lawrenson added mortgage fees and the level of deposit required are likely to stay relatively high and there is a "pretty strong chance" that the base rate in the UK will increase.
 

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