Funds drought stunts B2L growth

The lack of mortgage funding is stopping buy-to-let landlords growing their portfolios.

A survey by LSL Property Services shows that half of all landlords who would like to expand their portfolios are frustrated by the lack of mortgage finance.

LSL owns the country’s largest lettings agent network including national chains Your Move and Reeds Rains.

Some 49% of the landlords it polled say the market is attractive for investment and that they want to expand their portfolios.

But only 27% say they’ll be able to buy more property in the next 12 months.

Lack of finance remains the biggest barrier for landlords. Only 12% of respondents mention the availability of finance as a positive factor for buy-to-let investment.

David Brown, commercial director at LSL, says: “2009 saw the buy-to-let market return as a viable investment but lack of finance is holding the sector back.”