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UK Landlords Need More Finance To Expand Rental Property Portfolio's

UK Landlords Need More Finance To Expand Rental Property Portfolio’s

The Residential Landlords Association (RLA) have discovered that finance for landlords is woefully inadequate with almost 50% of UK landlords struggling to get additional mortgages, remortgage or even obtain more finance.

The RLA asked its members about obtaining further finance to expand their rental property portfolios

  • 24.1% found it very difficult to get a Buy-To-Let mortgage
  • 21.3% said it was impossible for them to obtain a Buy-To-Let mortgage.

The Residential Landlords Association findings about finance for landlords comes as the UK Government seeks to boost support for the private rented sector following the recent publication of the Montague Review.

The RLA have also stated that biggest challenge ahead of Mark Prisk, the new Government Housing Minister, will be to unlock enough financial support from banks to help small scale landlords expand their businesses.

The RLA have also voiced concerns about higher rents in the PRS caused by the unprecedented demand for rental property and the current shortage of supply. Additionally, the reluctance to lend by banks is also severely hampering the ability for the private rented sector to grow to meet the housing needs of young people and their families.

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 an end for the sake of those desperate for a roof over their heads.”

Finance 4 Landlords specialise in Buy-to-Let Mortgages and Remortgages, Landlords Insurance, Rent Guarantees, HMO Finance and Bridging Loans.

Great Mortgage Deals for Landlords

Great Mortgage Deals for Landlords

Sir Adrian Montague’s review of how best to encourage greater investment in the UK private rental sector properties

 

Property Investors Set To Cash In Following Montague Report

Property Investors Set To Cash In Following Montague Report

Property investors across the UK are buzzing recently after the long awaited release of the Montague review, which set out to review the barriers to institutional investment in private rented sector properties.

Despite the reassurance of Sir Adrian that his report would be relatively short, at 28 pages it isn’t really light reading material.

Here are some of the statistical highlights to give you a flavour of the review.

  • Today the UK private rented sector (PRS) houses 3.6 million households – this compares to 2 million in the early 1980s. (An increase of 56% over 30 years)
  • Around a third of households in the private rented sector are families with dependent children
  • 20% of households in the private rented sector have been at the their current address for more than 5 years
  • 1% of landlords own more than 10 properties
  • Every £1 million of new housing output supports 12 additional jobs per year – 7 directly and 5 indirectly
  • For every £1 invested in the construction industry, £2.60 is generated elsewhere in the supply chain
  • The number of households will grow by an average of 232,000 per year until 2033
  • Mortgage lending across the board has roughly halved since 2006-07
  • Returns on residential property have totalled 9.6% on average over the last 10 years – in comparison, commercial property ranges from 7.3% to 5.7%
  • Capital growth delivered an average of 5.9% annually over the last 10 years compared to 3.5% in income return
  • Britain has enough surplus land to build 100,000 homes by March 2015

All statistics taken from the Montague Review

 

Read the Montague review of the barriers to institutional investment in private rented homes in full.

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