11 May

Buy-to-let market retains demand

Buy-to-let market retains demand

Landlords and would-be investors have shown "quite a strong demand" for buy-to-let mortgages, it has been suggested.

Property Hawk editor Chris Horne said there is still interest in the property investment market despite the economic downturn.

Evidence published by the Association of Residential Letting Agents in March showed more landlords were looking to buy properties at the start of 2009 than they were at the end of last year.

However, Mr Horne indicated that landlords are being constrained by lenders who do not want to make the relevant finance available.

Some firms see buy-to-let as a high-risk market, he explained, and as a result are not as keen to lend as they may have been in the past.

"Unfortunately, we are in a situation where the market is reconsolidating itself," the expert stated. "After the boom years there were very generous terms for buy-to-let mortgages and all forms of lending."

Companies were offering "uncompetitive or unrealistic margins on their lending", which is not the case across the board in the current climate, he added.
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