Banks 'must increase lending to landlords'

News Category: Industry News

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The National Landlords Association (NLA) has called for banks to increase their lending to buy-to-let landlords in order to help stimulate market growth.

Vincenzo Rampulla, public affairs officer for the body, welcomed recent Council of Mortgage Lenders figures, which indicated a decrease in buy-to-let mortgage arrears, as a positive sign for both landlords and tenants.

However, Mr Rampulla expressed his concern that the industry will not be able to develop any further without increased lending from financial providers to allow landlords to increase their portfolios, particularly with many still threatened by the problem of rent arrears.

He said: "The lack of available credit continues to stifle market growth and, therefore, reduce available housing options … we would call on lenders to see what more they can do to increase the flow."

This echoes sentiments expressed by Arla, which suggested that the government should apply pressure on banks to stimulate an increase in "responsible" mortgage lending.

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