The Residential Landlords Association (RLA) have discovered that finance for landlords is woefully inadequate with almost 50% of UK landlords struggling to get additional mortgages, remortgage or even obtain more finance.
The RLA asked its members about obtaining further finance to expand their rental property portfolios
- 24.1% found it very difficult to get a Buy-To-Let mortgage
- 21.3% said it was impossible for them to obtain a Buy-To-Let mortgage.
The Residential Landlords Association findings about finance for landlords comes as the UK Government seeks to boost support for the private rented sector following the recent publication of the Montague Review.
The RLA have also stated that biggest challenge ahead of Mark Prisk, the new Government Housing Minister, will be to unlock enough financial support from banks to help small scale landlords expand their businesses.
The RLA have also voiced concerns about higher rents in the PRS caused by the unprecedented demand for rental property and the current shortage of supply. Additionally, the reluctance to lend by banks is also severely hampering the ability for the private rented sector to grow to meet the housing needs of young people and their families.
RLA Chairman, Alan Ward, said: “We welcome the Government’s renewed commitment and interest in the opportunities that the Private Rented Sector can play in meeting the country’s housing needs. However, this will not happen without financing from the banks. It is time that the blame game for the difficulties in accessing finance between Government and the banks came to an end for the sake of those desperate for a roof over their heads.”