Although the rental market is currently booming, unless you are a cash buyer, you are probably struggling to secure funding in order to expand your property portfolios—and you are not alone! A recent survey carried out by the RLA has discovered that as many as 50% of landlords have been unable (or at the very least described it as difficult) to find a lender willing to offer them a buy to let mortgage, despite the fact that as many as 1 in 5 landlords were keen to buy new properties and expand their buy to let portfolios.
Seems crazy doesn’t it? Here we are, experiencing an unprecedented demand for rental housing, yet lenders are unwilling to offer financial support to the private rental sector, even though there are many landlords out there with the means to invest in new properties.
Solving the buy to let finance conundrum is just one of the many tough tasks faced by the new Housing Minister, Mark Prisk. If he wants to follow through on the government’s pledge to help the private rented sector make up the shortfall in UK housing, he is going to have to make it a lot easier for landlords to access mortgage funding. And if he doesn’t, the housing shortage in the UK will only get worse over the coming months and years and increasing numbers of vulnerable people—particularly families and younger people—will be left without a roof over their head.
Have you had problems accessing mortgage funding in recent months? Let us know!
