7
May
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.
