More than six out of ten landlords are finding it difficult to get finance to expand their portfolios.
Source EA Today
Their frustrations are underlined in a new report from specialist buy-to-let lender Paragon, which has only recently reopened its books after an 18-month gap, its absence adding to landlords’ difficulties.
The report makes it clear that landlords remain confident, with 40% reporting rising demand for rental accommodation and 42% believing that demand will be higher still this time next year.
The report, covering the three months to the end of September, found that only 17% of landlords are finding it easy to raise money to fund new purchases, but 63% are finding it difficult.
Nevertheless, the average number of properties in a portfolio ticked up during the period, from 12 in the second quarter to 12.5 in the third. The average investment portfolio had a value of £1.45m, with the average gearing – the level of borrowing as a proportion of value – steady at 37%.