Landlords are in demand of buy to let remortgages to help them add properties to their portfolios.  Many homeowners are using remortgages to fund their entry into the buy to let market.  With landlords adding properties and many investors coming into the buy to let market it would appear that there would be a good supply of rental homes available.  However, the supply of adequate rental homes is so low that many are calling for the government to assist landlords in adding more properties to the market to meet the high demand.

According to a recent index of rental properties it showed that rental costs had risen to a record high for the second month in a row.  As demand for rental property has increased so has the cost to rent a property.  Without easing in the lending market there is bound to be a continuing flow of households looking for rental property and demand will only increase without more input to the supply.

The Association of Residential Lettings Agents (ARLA) reported that there is definitely a lack of supply when it comes to rental properties.  Of the 6,000 members of the Association 75 per cent believe there is now more tenants than there are properties with the demand in London and the southeast at all-time highs. 

Tim Hyatt, president ARLA, says: "There is a finite amount of rental property and unless both housing supply and mortgage availability improves, renters will find their options in the market are reduced. The government is doing little to encourage landlords to invest in new properties; therefore we are running out of quality stock to offer to tenants. This is reflected in rent increases and a lack of choice for consumers.”