Mortgage News

Buy-to-let mortgage market not dead, industry body says

2 October 2008

The UK`s buy-to-let mortgage market is not dead, despite rumours to the contrary, an industry body has said.

According to the National Landlords Association (NLA), the fundamentals of the market remain strong.

It made its comments in the wake of the collapse of Bradford & Bingley, a government takeover of which was recently approved by European regulators.

The NLA suggested that, as only 25 to 30 per cent of landlords actually use buy-to-let mortgages to finance their property purchases, a significant number remain "untouched" by the bank`s problems.

Meanwhile, a variety of factors, including an increasing student population, rising immigration and an increasingly mobile workforce, are all serving to keep up demand for rental homes, it added.

In words which may reassure those seeking a buy-to-let mortgage, Simon Gordon, head of communications at the NLA, said: "It is simply not true that the nation`s landlords are now facing some sort of crisis."

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