The Bank of Englands Credit Conditions Survey for the second quarter has forecast that risk limitation will still be high on buy-to-let and other forms of secured lending.

Property investors will continue to face tough financing conditions, claims one housing body.

The Bank of Englands Credit Conditions Survey for the second quarter has forecast that risk limitation will still be high on buy-to-let and other forms of secured lending.

It expects an increase in demand for buy-to-let lending, from a current net balance of 2.3 per cent to 14.5 per cent.

However, lending spreads are only expected to go up to 22 per cent from 15 per cent, suggesting that credit will remain limited.

The Royal Institution of Chartered Surveyors have said that the survey reflects “anecdotal reports” from the market.

Simon Rubinsohn, chief economist at the organisation, said that the outlook remains difficult despite the rise in the availability of finance.

“Although more finance is now available, large deposits are still required to access it,” Mr Rubinhson commented.

Posted by Royston Hunter

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