The Intermediary Mortgage Lenders Association (IMLA) is concerned that the buy-to-let mortgage market is contracting rapidly and so will not be able to grow and support increased demand for rented property if private investors cannot get mortgage finance.

Peter Williams of IMLA said: “If we are to see a genuine contraction in homeownership in the UK, the government must put its money where its mouth is. They must promote non-banks to the bank bail-out premiership. Currently, intermediary lenders who traditionally serve the buy-to-let market are being frozen out by the Government – without support helping them to free up cash to lend, the buy-to-let market will suffer further retrenchment. This is a vital component of the UK housing market and the Government is currently ignoring its need.”