“Finance readily available” say landlords

Landlords’ perception of the availability of buy-to-let finance is now at its highest post-crisis level, a survey by Paragon Mortgages has revealed.

The specialist BTL lender’s PRS Trends survey of 200 landlord customers, found that in the first quarter of 2014 almost half of landlords (44%) felt that finance was readily available. This is a 2% increase on Q4 2013 and the highest level reached since the question was first asked in 2010.

Landlords’ views on the availability of BTL mortgage finance have steadily become more positive, particularly during the past 12 months. Survey results show that confidence was at its lowest point during the first quarter of 2011 when just 17% of landlords thought that finance was widely or reasonably available.

John Heron, managing director of Paragon Mortgages, said: “The availability of buy-to-let finance is vital to a healthy and competitive private rented sector.

“As the market has recovered we have seen the general improvement in confidence reflected in how landlords are feeling about the availability of buy-to-let finance. Just to put this in further context, Moneyfacts data shows that at the lowest point there were less than 200 products available however, the latest figures show that there are now more than 500. As we progress through 2014 I believe we will continue to see further growth in the private rented sector, greater confidence in buy-to-let lending and more innovation from buy-to-let lenders.”