In recent weeks there have been calls by the Intermediary Mortgage Lenders Association (IMLA) to the government to give Buy To Let lenders help and support.
 
Research conducted by the IMLA concludes that 58% of would be first time buyers were unable to obtain a mortgage in the final three months of 2008 through an intermediary. Of this population it was suggested that 8 out of 10 opted to rent instead, which has significantly increased the levels of demand in the private rental market.

 

However, the IMLA research confirms that mortgage intermediaries expect volumes to drop across the board with Buy To Let being hit the hardest. This is causing a huge strain on the current rental market as although there is a growing demand from tenants there is limited access to Buy To Let mortgage facilities for the landlords.

Interestingly, a Royal Institute of Chartered Surveyors report coincides with that of the IMLA’s first time buyer findings. RICS suggest that there are only a handful of mortgage providers that would offer a mortgage deal with a 5% deposit. However, they also report increased interest among first time buyers and buy to let investors as property prices fall.