28 Feb

Buy-to-let door 'could have been closed'

Buy-to-let door 'could have been closed'

The door should have been closed to buy-to-let investors in the direct aftermath of the credit crunch, according to an official at Firstrung.

Chief executive at the organisation Paul Holmes stated that service providers ought to have been more careful and stopping offering products to investors, but also that these investors themselves will "have themselves to blame" should problems be seen.

When the credit crunch hit, in October last year, the markets began to freeze and most of the information available stated that prices were about to halt. Mr Holmes remarked.

"Lenders froze the market because they stopped lending to each other, and it still hasn't unfrozen," he commented.

Recent research from the Council of Mortgage Lenders stated that the number of buy-to-let mortgages held in the UK now stands at over a million.

However, spokesman at the Association of Residential Letting Agents Malcolm Harrison claimed that such a trend has not had an impact upon first-time buyers.ADNFCR-1222-ID-18488523-ADNFCR

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