Almost half of landlords have found it very difficult or impossible to obtain a buy-to-let mortgage, according to a survey by the Residential Landlords Association.
Asked how easy they had found it to access a buy-to-let mortgage, of the 141 RLA members questioned, 21% said they were unable to obtain a buy-to-let mortgage, with a further 24% saying they found it ‘very difficult’ and 22% had to shop around.
Just 14% found it easy to get a mortgage, and 17% said they found it ‘fairly straightforward’.
The RLA said that a major challenge for new housing minister Mark Prisk will be to persuade banks to unlock the financial support needed by private landlords to grow the residential lettings sector at a time when more homes are needed.
RLA chairman Alan Ward said: “We welcome the Government’s renewed commitment and interest in the opportunities that the private rented sector can play in meeting the country’s housing needs. However, this will not happen without financing from the banks.
“It is time that the blame game for the difficulties in accessing finance between Government and the banks came to the end for the sake of those desperate for a roof over their heads.”