The National Landlords Association will tomorrow tells MPs that residential landlords are facing significant difficulties in trading properties and refinancing their portfolios.
Mark Shepherd, PropertyWeek.co.uk – 29 June 2009
The representative body for private residential landlords will give evidence before the House of Commons Select Committee, which is examing mortgage arrears and access to mortgage finance. It will be told that limited mortgage finance means that landlords have to offer higher deposits with average loan to value ratios of 75%.
The NLA will say that along with the wider mortgage market, lending criteria have become stricter. This is making it harder for potential landlords to ender the market by using conventional lending routes.
‘We are in no doubt that the lack of availability of mortgage finance is having severe consequences for landlords across the UK,’ said David Salusbury, chairman of the National Landlords Association, ahead of tomorrows hearing.
‘With over 25 per cent of landlords saying they would like to seek finance during the next quarter, this dearth of buy-to-let products is strangling the market.’
Also giving evidence to the committee is the British Bankers Association, Building Societies Association, Council of Mortgage Lenders and Intermediary Mortgage Lenders Association.
Live proceedings of the hearing begin tomorrow at 9.45am, with the NLA giving its evidence at 11am.
