Buy to Let restictions, reports North London Mortgage Broker, London Mortgage Advice. Tuesday, 2nd February 2010

Constrained by the lack of available mortgage finance, half of buy-to-let landlords want to buy more residential property to rent out privately.

49% believe the conditions are currently right for them to expand their property portfolios, a survey conducted by LSL Property Services, which owns the UK's largest lettings agent network, including national chains Your Move and Reeds Rains,revealed.

Because the supply of deals is so restricted and criteria are so stringent, only 27% said they will be able to access mortgage funds in the next year.In the past, buy-to-let investors could get a mortgage from one of dozens of lenders with a deposit of 15%, and interest rates were very competitive.Today only a handful of lenders are operating in this sector, most demand a 35% deposit and the interest rates on offer are relatively high.

“2009 saw the buy-to-let market return as a viable investment. Landlords recognise this, despite the rough ride they have had to endure over the last couple of years.

“The average landlord made losses in 2007-8, but 2009 marked a return to form for property investment.

“But the availability – or lack of - of mortgage finance is holding the sector back. Even experienced landlords who are keen to take advantage of lucrative returns and improving market conditions can’t get access to the cash they need.” David Brown, commercial director of LSL Property Services, said.