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NewsGovernment 'needs to encourage banks to lend to landlords'
Government 'needs to encourage banks to lend to landlords'
Posted by Helen Jones
The government has been urged to do more to increase liquidity in the UK's buy-to-let mortgage sector by being more proactive in encouraging financiers to provide the necessary capital to landlords.
That is the view of Chris Town, vice chairman of the Residential Landlords Association (RLA), who has said that although the recent increase in the number of buy-to-let home loan deals available in the country is good news, the Conservative-Liberal Democrat alliance still needs to incentivise lending for banks and building societies.
Research published by Paragon last week (January 25th 2011) showed that some 46 per cent of brokers expect to increase their buy-to-let mortgage business throughout the coming year.
Mr Town explained that a lack of new construction in the UK is placing more pressure on the rentals sector.
"What is crucial is that the government indicates to banks that something they should be looking at in a positive way is lending to landlords and property investors," he concluded.
03/02/2011 14:50
News category: Property