'More liquidity needed' to help buy-to-let landlords
Published: 03-Jan-2008
More needs to be done by the Bank of England to introduce liquidity into the mortgage market and improve the situation for buy-to-let landlords.
That's the message from Michael Bolton, managing director of mortgage broker Eadus, who told BBC Radio 4's Today programme that the current economic climate made the need for an injection of funds all the more pressing.
He claimed that officials at the Bank and in government had underestimated the effect of the credit crunch and financial market problems on the buy-to-let sector, and indeed the property market as a whole.
"For me it's entirely dependent on the politicians and central bankers pulling their fingers out and understanding the severity of the grip that we're currently in," he told the broadcaster
Referring specifically to buy-to-let, Mr Bolton added: "As a medium to long-term market, it's as sustainable as it's always been, but like every other sector, it's going to face a tough 2008."
The Bank made an initial offering of extra liquidity late last year, lending commercial banks an extra £10 billion in the weeks leading up to Christmas.
