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News release

NLA to appear before Commons Treasury Select Committee

29 June 2009

The National Landlords Association (NLA), the leading representative body for private residential landlords in the UK, has been called to appear before the House of Commons Treasury Select Committee on Tuesday 30 June.

As part of the Committee’s new inquiry into mortgage arrears and access to mortgage finance, the NLA will give evidence suggesting that landlords have had significant difficulties in buying and selling property as well as refinancing existing portfolios. Where limited mortgage finance is available, landlords have to offer far higher deposits with average loan-to-value (LTV) around 70 to 75 per cent.

The NLA will also give evidence which shows that, along with the wider mortgage market, lending criteria have become stricter. With the increase in arrangement fees and the reduction of interest only mortgages, the consequence is that those considering entering the market for the first time are finding it almost impossible to find appropriate mortgages and are unlikely to become landlords using the conventional channels.

David Salusbury, Chairman, National Landlords Association, said:

“We are in no doubt that the lack of availability of mortgage finance is having severe consequences for landlords across the UK. With over 25 per cent of landlords saying they would like to seek finance during the next quarter, this dearth of buy-to-let products is strangling the market.

“Together with colleagues from across the property industry, we very much hope to be able to show the Treasury Select Committee clear evidence that the increase in mortgage arrears and repossessions comes as a direct consequence of a rise in rental arrears.”

Any media enquiries to:
Steven Hilton
Media Relations Manager, NLA
Email:
Tel: 020 7840 8906
Mob: 07508 031 084

Notes to Editors:
The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With almost 19,000 individual landlords from around the United Kingdom and over 90 local authority associates, it provides a comprehensive range of benefits and services to its members and strives to raise standards in rented accommodation. The NLA seeks to safeguard landlords’ legitimate interests by making their collective voice heard by local and central government and the media. The NLA seeks a fair legislative and regulatory environment for the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities.