Buy-to-let products ‘must be sustainable’ warns NLA
As mortgage finance becomes available and the demand for rental properties continues to boom, The National Landlords Association (NLA) has warned those looking to extend their Buy-to-Let property portfolios to do so in a sustainable manner.
A recent survey by the NLA showed that 49% of landlords reported an increase in tenant demand during the first three months of 2011, while 71% of landlords agreed that the market would further benefit from more Buy-to-Let lenders or greater competition.
But Richard Price, NLA Director of Operations, has warned that property owners need to select their mortgage products carefully or risk dangers in the future.
“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,” said Mr Price.
“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.”
For more information on the Buy-To-Let market and how you can take advantage of the current interest in rental properties, contact our experts today.