Mortgage lending rise 'has pros and cons for landlords'

News Category: Industry News

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News of increased levels of mortgage lending from UK banks could be set to have both positive and negative repercussions for landlords and letting agents, according to an expert.

British Bankers' Association figures for June on high street bank activity have revealed that gross mortgage lending has increased from £7.8 billion in May to £7.9 billion.

The number of house purchase loans approved in the same period also increased from 31,919 to 35,235.

Responding to the data, Kesh Thukaram, managing director of property services provider Smartlandlord, suggested that the increased availability of funds could see a decrease in tenants looking to rent.

However, Mr Thukaram advised that landlords could also be set to benefit from an increase in reluctant landlords selling their properties as demand for housing rises.

He said: "This should balance out demand and supply in the private rented sector."

Earlier this month, Mr Thukaram advised buy-to-let landlords to take advantage of the current low house prices by expanding their property portfolio.

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