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Banks look to avoid lending to property owners
01 Feb 2012
According to a private rented sector expert at LettingFocus.com, many banks are looking for "any excuse" not to lend to landlords and property owners.
David Lawrenson believes that banks are increasingly becoming more intransigent when it comes to the lending of mortgage finance or remortgaging existing properties.
He claimed that he has been told this by several experienced landlords in the London property market who, he also claims, have experienced difficulties with renters unable to pay, highlighting the use of rent guarantee insurance.
Mr Lawrenson said: "There are certainly more people looking to get into the market judging by the amount of queries I am getting – there is much more correspondence with landlords than before.
"The banks and building societies are extremely intransigent and looking for any excuses not to lend."
The Association of Residential Letting Agents (Arla) recently reported that 2011's increased buying and selling activity in the private rented sector may not continue in 2012.
Posted by Michael Brown
