NLA updates MPs on “dearth” of buy-to-let finance

Permalink: NLA updates MPs on “dearth” of buy-to-let finance
by Gill Montia

The National Landlords’ Association (NLA) has been called to appear before the House of Commons Treasury Select Committee.

The body, which has over 17,000 private landlord members, is assisting the Committee in its inquiry into mortgage arrears and access to mortgage finance.

Its evidence will focus on the difficulties faced by private landlords in buying and selling property as well as refinancing existing portfolios.

Along with the wider mortgage market, lending criteria for buy-to-let loans have become stricter, with an average loan-to-value ratio of between 70% and 75%.

In addition, arrangement fees have risen, leaving those considering entering the market for the first time struggling to find an affordable deal and according to the NLA “unlikely to become landlords using the conventional channels”.

The Association’s chairman, David Salusbury, says: “With over 25% of landlords saying they would like to seek finance during the next quarter, this dearth of buy-to-let products is strangling the market.”

He adds: “Together with colleagues from across the property industry, we very much hope to be able to show the Treasury Select Committee clear evidence that the increase in mortgage arrears and repossessions comes as a direct consequence of a rise in rental arrears.”