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Buy-to-let will suffer without government support, warns IMLA

The Intermediary Mortgage Lenders Association has warned that buy-to-let lenders will not be able to cope with demand unless they are able to access government support.

An IMLA survey of 506 mortgage brokers carried out in December found that eight out of ten first-time buyers unable to secure a mortgage through their broker were choosing to rent instead.

Brokers expect business levels to drop in all sectors but are predicting that buy-to-let will be particularly hard hit.

Peter Williams, executive director of IMLA, says the government needs to start giving buy-to-let lenders support so that the rental market can make up for the downward trend in home ownership.

He says: “If we are to see a genuine contraction in homeownership in the UK, the government must put its money where its mouth is.

“They must promote non-banks to the bank bailout premiership.

“Currently, broker-facing lenders who traditionally serve the buy-to-let market are being frozen out by the government.

“Without support helping lenders to free up cash, the buy-to-let market will suffer further retrenchment.”

Williams adds: “This is a vital component of the UK housing market and the government are currently ignoring its need.”

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