Lack of lending 'is stifling residential lettings market'

News Category: Industry News

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A lack of mortgage lending may be hampering the ability of landlords and letting agents to meet demand for rented property, according to a new report.

Figures released by price comparison site moneysupermarket.com have revealed that the number of available buy-to-let mortgage products has fallen by 70 per cent in the last year.

This is despite the fact that enquiries about such products has increased by half in the same period.

According to Hannah-Mercedes Skenfield, mortgage channel manager for the site, banks have become reluctant to lend to buy-to-let investors as they are considered to be a higher-risk prospect.

However, she warned that this line of thinking could mean that rising demand for residential lettings may not be met as a result.

Ms Skenfield said: "With significantly less products left on the market and high interest rates attached to those available we could potentially have a ticking buy-to-let time bomb on our hands."

This comes after Arla last month called on the government to encourage lending to the rented property sector in order to encourage further industry growth.

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