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Press release

Buy-to-let is not the UK's 'sub-prime crisis'

11 June 2008

The National Landlords Association (NLA), which represents almost 14,000 landlords, has said that the fundamentals of UK buy-to-let remain strong.

Despite a reduction in available mortgage products, NLA Mortgages continues to offer landlords the chance to access mortgage finance and benefit from a guaranteed cashback sum.

From recent headlines you could be forgiven for thinking that all landlords are selling up and getting out of the market but according to recent research nothing could be further from the truth, with average UK rents having increased by 13.8 per cent in the year to April 2008*.

The private-rented sector is entirely counter-cyclical. For first-time buyers who are still struggling to make it onto the property ladder, their only choice is renting. And with the increased demand comes an increase in rent and, for the professional landlord, the current market is providing opportunities to expand portfolios.

NLA Mortgages, in addition to traditional buy-to-let loans, also has access to alternative lines of funding not generally available in the marketplace which means there are still financial solutions available for the professional landlord. But what is critical in the current climate is for landlords to shop around to find the most appropriate products for their circumstances.

David Salusbury, Chairman, NLA, commenting on NLA Mortgages, said:

"The NLA does not subscribe to the view that the end is in sight for the buy-to-let market. On the contrary, we believe now is a good time for the professional portfolio landlord, many of whom will be benefiting from increased demand and rising rents.

"In the current economic conditions it will be important for landlords to keep in close contact with their mortgage broker. NLA Mortgage’s free online dedicated sourcing and quotation system for landlords is precisely the type of tool many of our members already find helpful in order to find their next mortgage or remortgage.

"It has to be said, alongside keeping landlords up-to-date with the latest mortgage deals, the guaranteed 0.25 per cent cashback for NLA members should also go some way to helping reduce the costs of obtaining a new loan advance."

* Paragon Buy-To-Let Index for April highlighted that average UK rents increased by 13.8 per cent in the 12 months to April 2008, with month-on-month growth recorded at 0.1 per cent. Typical rental income for a landlord was £12.048 in the month.

For further information, contact:
Steven Hilton, Media Relations Manager
Email:
Tel: 020 7840 8906 : Mob 07508 031 084

Notes to Editors:
The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With almost 20,000 individual landlords from around the United Kingdom and over 80 local authority associates, it provides a comprehensive range of benefits and services to its members and strives to raise standards in rented accommodation. The NLA seeks to safeguard landlords’ legitimate interests by making their collective voice heard by local and central government and the media. The NLA seeks a fair legislative and regulatory environment for the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities towards their tenants..