Landlords in the UK are becoming more upbeat about their future prospects but still feel encumbered by many banks reluctance to loosen their purse strings. Or at least this appears to be the case judging by the latest survey carried out by an online letting agent.
Upad, a leading internet letting agency, reveal that their latest Landlord Confidence Index survey found that 62% of landlords questioned are now more confident for their business in the future compared to what they were a month ago. However, many feel that they are being restricted from expanding their business by the banking sector, whose punitive deposit requirements and reluctance to provide loans is preventing them from taking advantage of the lull in property prices and the booming rental market.
James Davis the Chief Executive of Upad, speaking about lenders, said “”Each of them is waiting for their competitors to make the first move. Whoever comes out with a buy-to-let finance at a sensible rate will gain a huge amount of business; Northern Rock reported a £200 million loss in the first half of 2010, mostly because they refused to open the gates to lending. Banks are stifling the market place for first time buyers, movers, investors and auction houses alike.”
In other news, the National Landlords Association (NLA) have announced that its members can join the government authorised tenancy deposit protection scheme “Mydeposits” for a flat rate of £10. The scheme is designed in a way that allows landlords to hold on to a tenants deposit for the whole of his incumbency of the tenancy This is useful additional cover to landlord insurance which most landlords already have.