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FMNL6749 - Mortgage Introducer print advert_Half page vertical 04/10/2012 13 News Review: Housing supply Distinctly different Steady growth is good by


David Finlay, intermediary managing director for Barclays


In recent times it’s fair to say that buy-to-let has been one of the most high profile and strongest performing sectors in the intermediary market- place. Its continued impor- tance has not gone unno- ticed. Te Communities and Housing department com- missioned the Review of the barriers to institutional invest- ment in private rented homes in an effort to encourage in- stitutional investors to take a greater interest in the housing construction sector. Chairman of private eq-


uity group 3i Adrian Mon- tague compiled the review on the back of the rise in rents against earnings and also the dominance of small landlords, where just 1% of private landlords own more than 10 properties. Te re- port said: “While desirability of affordable housing should not be ruled out, it should be weighed against the benefits already built into market rent developments, in the context of an accurate assessment of the economics of building homes to rent. In many cases, it will be appropriate for au- thorities to waive affordable housing requirements in re- lation to schemes for private rental, or to the private rental component of larger schemes also including an owner occu- pier component.” Tis is an emotive area that


will no doubt cause great de- bate within the industry and


www.mortgageintroducer.com beyond. Another question


remains - are people choos- ing to rent or are they being forced to due to the lack of af- fordable housing options? Not to mention the burning ques- tion of how best to assess and assist these demands.


Need to expand Te National Landlords As- sociation suggests people are shiſting away from home ownership towards more flex- ible forms of accommodation with long-term tenancies. Te proportion of landlords who have added property to their portfolio has risen by 2% in the second quarter (from 10%) with 22% of landlords expecting to purchase addi- tional property in the next 12 months. However, investment to meet growing property demand seems to be prob- lematic for some, with nearly a third (31%) of landlords unable to expand in the last three months due to difficul- ties accessing finance. Tere is room for improve-


ment but equally there are lenders out there who are willing to lend. Echoing the words of David Salusbury, chairman of the NLA, private landlords are a key part of the investment mix required to meet the rising need for more flexible forms of hous- ing at a time when demand for rented accommodation far outstrips supply. So it’s important that we have the products and service to make sure they have access but we as an industry must main- tain service standards and the necessary attitudes to risk to bring the best outcomes over the long as well as the short term.


If it’s a limited company, an HMO, a multi-unit block or a customer who already owns a complex portfolio - remember who to choose.


Not your average lender


www.paragon-mortgages.co.uk 0845 849 4057


MORTGAGE INTRODUCER OCTOBER 2012 17


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