BTL products need to be sustainable

Nia Williams

June 21, 2011

Commenting on the increase of buy-to-let mortgage products in recent weeks, the reappearance of several major finance providers, coupled with high demand for rental properties, Richard Price, director of operations, NLA said: “The NLA believes that the private rental sector will continue to play a crucial role in the coming years.

“Competition for quality rented accommodation is currently very high; it is likely that before the end of this decade one in five households will rent privately. As a result, there is great demand for landlords to provide the UK population with quality housing.

“At the market’s height, we witnessed the growth of mortgage offers, which for some investors with underachieving portfolios proved to be unsustainable. But early signs are that the market has learned from the past.

“Any buy-to-let products that enter into the market to support this need must be sustainable with consideration for the longer term.”

A recent survey by the NLA showed that 49% of landlords reported an increase in tenant demand during the first three months of 2011. A further 49% expect this increase to continue.

The survey also revealed that 71% of landlords agreed that the market would further benefit from more buy-to-let lenders or greater competition.

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