View more on these topics

NLA calls for greater innovation in B2L market

Research from the National Landlords Association has shown that almost three-quarters – 74%, of landlords agree that the buy-to-let market needs greater innovation.

While an overwhelming proportion, 89%, also believe it would benefit from more lenders or greater competition.

However, although many landlords were dissatisfied with the current range of buy-to-let products on the market, the research found that property acquisition is in fact on the rise with one-in-ten landlords having added properties to their portfolios over the last three months and one-in-five expecting to do so in the next year.

Furthermore, more than half of landlords surveyed do not believe that access to buy-to-let mortgages is getting any easier, with three-in-five agreeing that their individual circumstances as landlords are not being considered by buy-to-let lenders.

David Salusbury, chairman of the NLA, says: “Early signs of increasing property acquisition suggest that landlords are feeling more confident about future prospects of the buy-to-let market.

“However, while these findings are encouraging, some professional landlords, with more extensive portfolios, seem to be struggling to secure funds for additional expansion.

“The private-rented sector is playing an increasingly important role in the provision of housing. Buy-to-let products must be sustainable, with consideration for the longer term, if the private-rented sector is to rise to this challenge.”

Recommended

SPF reverses fortunes with profit of £952,000

SPF Private Clients has reported a pre-tax profit of £952,000 for the eight-month period ending on December 31 2011. The profit compares with a loss of £341,000 in the 12-month period to April 2011. In May 2011, Savills sold an 80.01% stake in the business to the senior management team of Savills Private Finance, which […]

Get the remortgage message to clients

A headline in the April 30 issue of Mortgage Strategy – ’Return to recession is no surprise and is unlikely to unnerve lenders’ – was a timely reminder of how robust our lending environment is and that it will cope with adversity.

2

CMC trade body slams calls for tighter regulation

The trade body for claims management companies has attacked Which? and MoneySavingExpert.com for “siding with the banks” after the consumer groups and the British Bankers’ Association wrote to the Ministry of Justice calling for tighter regulation of CMCs.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • GHU 21st May 2012 at 9:45 am

    From my experience the fact that a landlord may hold ten or more properties does not necessarily mean that they are ‘professional’. Indeed a lot of these landlords have levereaged so heavily to acquire new property that they are quite exposed, especially if interest rates rise. It seems to be forgotten that these borrowers have been some of the major beneficiaries of lower interest rates but, as and when interest rates rise, they may struggle to subsidise any voids.

    Cashflow problems are the biggest enemy of all businesses and I have seen applications from large portfolio holders where it is obvious that they will start to suffer when they have to start paying higher monthly payments.

  • Professional and Commercial 17th May 2012 at 1:20 pm

    Buy to let mortgages are now restricted mainly to amateur landlords who own less than 10 properties. Which is strange considering Professional landlords are far more experienced and own the lions share of properties.
    Finance is available for Professional landlords but they need to approach a specialist broker.