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