Lending conditions 'preventing landlords from investing'

Friday, April 16th 2010

Britain's landlords could be struggling to obtain the finances they need to invest in more property, it has been claimed.

According to public affairs officer at the National Landlords Association (NLA) Vincenzo Rampulla, many landlords are struggling to meet the conditions required to obtain a mortgage.

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

And this could explain why only 12 per cent of landlords are going to invest in property this quarter, even though 36 per cent thought there would soon be an increased tenant demand, according to a survey by Paragon Mortgages.

Mr Rampulla says this is not surprising, given the financial situation preventing many landlords from expanding their portfolios.

However, the survey noted an increase in the average property portfolio value, which hinted that house prices are getting firmer and some investors are continuing to purchase more property.