Prospective buy-to-let investors are finding it increasingly difficult to tap the rental market says the Royal Institution of Chartered Surveyors.
Its latest lettings survey blames a lack of mortgages readily available for would be landlords to choose from, as well as capping the number of approved buy-to-let mortgages due to the ongoing credit crunch.
Barry Hall, spokesman for RICS, says: ““While banks remain cautious about offering loans, demand for rental property will continue to increase with many would-be-buyers unable to make the jump to home ownership.”
Meanwhile, those landlords with an existing portfolio behind them are cashing in. The survey found that yields are growing at their fastest pace since 2005, with more landlords hanging on to their investment.
The number of investors selling when their existing tenancy expires has fallen from 6.5% to 4.6%.