Landlords are planning on expanding portfolios

Published: November 20, 2007

There could be an increased demand for buy-to-let mortgages in the coming years, as landlords are planning on expanding their portfolios of property, a study has indicated.

The National Landlords Association (NLA) found that 23.4 per cent of current landlords think they will expand their property portfolios over the next five years.

Many will use buy-to-let mortgages to finance this growth.

David Salusbury, chairman of the NLA, explained: "The fall-out from the so-called credit crunch has dominated public attention in recent weeks, but in times of financial uncertainty people continue to need a roof over their heads.

"That landlords are committed to invest further in the private rented sector over the next five years demonstrates that they remain confident about their businesses over the medium term."

Recently, an industry expert suggested that the government's Home Information Packs (Hips) have put people off using buy-to-let mortgages to invest inrented property.

Mark Butterworth of the Residential Landlords Association said that there was a "general sentiment that any more paperwork is likely to lead to disinvestment in the rented sector".