Reports out this week indicate something most of us have known for a long time: the buy to let industry is in a crisis that is set to only get worse if banks continue to take the line they have recently adopted.
The crux of the matter is that enquiries regarding BTL properties have increased by fifty percent over the past year, while the number of deals available from banks has dropped by seventy percent. This is clearly causing major problems with supply and demand. Hannah-Mercedes Skenfield, Moneysupermarket mortgage channel manager has this to say on the situation
“Our figures show nearly ten per cent of those looking for a mortgage are looking for a buy-to-let mortgage, but the number of products has fallen by over two-thirds compared to this time last year,” she says.
“With significantly less products left on the market and high interest rates attached to those available, we could potentially have a ticking buy-to-let time bomb on our hands. The need for rental housing is increasing, but there may not be enough landlords available to cater for this demand.”
This really does seem to be a recipe for housing disaster and we can only hope that something gives soon in the banks attitude to help us avoid this crisis.
