Landlords see improvement in finance availability

The proportion of landlords who think that buy-to-let finance is more freely available is at the highest level since the financial crisis, a survey by Paragon Mortgages has found.

The survey of landlord customers found that 35% would describe Buy-to-let finance as at least reasonably available, a rise from 31% in the first quarter of 2013 and the highest level since 2010.

Private investor landlords – those with between one and five properties – were more likely to think buy-to-let finance was widely available – 8% compared to 3% of professional landlords.

Of those surveyed 34% said they thought availability was limited and 12% said that it was very restricted.

Landlords were also asked whether they intend to purchase rental property in the third quarter, with 19% reporting that they plan to buy. This is an increase on 13% in the first quarter.

Of those landlords looking to extend their portfolios more than half are planning to buy terraced houses (63%).

Private investor landlords are more likely to buy this type of property than professionals – 80% compared to 61%.

John Heron, director of mortgages at Paragon, said: “This is very positive news for landlords and shows there has been a meaningful improvement in the availability of buy-to-let finance.

“As we have seen in other research, there has been a clear shift in terms of growth being led by landlords with smaller portfolios and there has been a marked increase in the number of products being offered and the variety too, at this end of the market.”

Article courtesy of Mortgage Introducer

RentPro property management software for letting agents and landlords.

You may also like...