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6 Mar 08 - Landlords 'Hurt By Credit Crunch'
Property investors have fewer buy-to-let mortgages to
choose from after the credit crunch caused the market to
"dry up", a report claims.
The Royal Institution of Chartered Surveyors said would-be
landlords are struggling to enter the sector because appropriate
mortgage products are becoming rarer.
It also said the variety of deals on the market has also
reduced as lenders look to tighten their belts.
But there is some good news as Rics found 27% more surveyors
said rents are rising than those who reported falls in the
last quarter of 2007.
And although this is down from the 31% figure recorded
in the previous three months, it is still double the long-term
average.
Rics spokesman Barry Hall said: "While banks remain
cautious about offering loans, demand for rental property
will continue to increase with many would-be-buyers unable
to make the jump to home ownership.
"Established investors continue to reap the benefits
of the current uncertainty in the housing market and have
been enjoying the fruits of rising rents, but new investors
are struggling to get the necessary finance to enjoy this
buoyant sector."
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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