Landlords Struggle to Secure Finance even with £800 per month Rental Incomes

25 September 2012 Categories: News

Landlords Struggle to Secure Finance even with £800 per month Rental Incomes

The average rent for England and Wales has skyrocketed over the summer and now stands at £808 per month, but over half of the landlords that took part in a recent survey run by the Residential Landlords Association admitted to still finding it virtually impossible to secure additional finance with which to expand their property portfolios.

Of the landlords questioned, all of whom are members of the RLA, over 23% said that securing finance in the form of a buy to let mortgage is now ‘impossible’. An additional 24% said it was ‘very difficult’, while 22% they had to shop around a great deal to find a mortgage provider willing to lend.

This news comes on the back of a government initiative aimed at boosting the amount of finance available for the private rental industry.

Alan Ward, chairman of the RLA commented, “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.”

He then went on to say “It is time that the blame game for the difficulties in accessing finance between government and the banks came to the end for the sake of those desperate for a roof over their heads.”