7 May

Buy-to-let mortgage market shrinks as rental demand grows

Buy-to-let mortgage market shrinks as rental demand grows

Despite the fact that five per cent more people are renting now than were in October 2007, moneysupermarket.com reports that there has been a 40 per cent drop in the number of buy-to-let mortgage products available in the last month alone.

More than one in ten of the people surveyed by the price comparison site said they had planned to get on the housing ladder but could no longer afford it because of higher deposit requirements.

A further third of respondents said they simply could not afford to buy now.

Louise Cuming, head of mortgages at moneysupermarket.com, warned that with buy-to-let mortgage products disappearing from the market at such a rapid rate, some people could soon be unable to buy or rent a property.

She stated: "As stringent lending pushes people into the buy-to-let market, the decrease in the number of buy to let mortgages becomes increasingly alarming."

Buy-to-let properties could offer good value for money for London tenants, the director of residential property agents Ludlow Thomson recently suggested.

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