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Existing landlords benefit from BTL shortage

Existing landlords benefit from BTL shortage

Category: Mortgages

Updated: 14/12/2009
First Published: 14/12/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The dearth of buy-to-let could leave existing landlords in an even stronger position in 2010, it has been suggested.

The property website Rightmove believes competition from potential new landlords is unlikely to be forthcoming next year as a consequence of the lack of available finance, leaving those already in the market firmly in the driving seat.

In addition, tenant demand and landlords rental returns are also set to grow as a result of increased demand from those who are unable to buy a property.

According to the latest research from Moneyfacts.co.uk, just 223 buy-to-let products are available at present, a far cry from at the peak of the market in September 2007 when 3,662 products were on offer.

"The buy-to-let mortgage market has been one of the biggest casualties of the financial crisis, with only a couple of hundred products surviving with much larger deposit requirements," said Darren Cook, spokesperson at Moneyfacts.co.uk.

"Product availability is still a problem, but the good news is that those providers left open for business are starting to compete on interest rates."

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