Buy-to-let lending on the increase

There are strong indicators to show that there are more first-time landlords entering the market as buy-to-let lending is on the increase.

Property Investor Show private investor expert Richard Bowser from the Property Investor News says:

“The value of buy-to-let lending in the second quarter was £2.4 billion, of which £1 billion was remortgaging indicating that it is first-time landlords who are entering the market. The data shows that in the second quater of 2010, the number of buy-to-let mortgages taken out was 24,900, which is up 13% in the first quarter of 2010 and as a year on comparission is up 15%.

“The high level of remortgaging indicates that it is first-time landlords entering the market because they are unable to sell and need the equity to reinvest in another property to live in, while renting out their existing property,” says Bowser.

Property Investor Show landlord expert Paul Shamplina from Landlord Action, which specialises in assisting landlords evicting bad tennants says: “We have seen an increase, in the last year of 15% on first-time landlords, instructing us to carry out evictions. This indicates that there are more first-time landlords in the market who are inexperienced in dealing with tenants and falling into difficulties.”

Property Investor Show & OPP Live runs from 14-16 October 2010 at London ExCel.

For more information visit: propertyinvestor.co.uk/london