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Top tips for landlords in buy-to-let squeeze

Lloyds Banking Group, now Britain’s biggest mortgage lender, has halved the amount it lends to landlords — just as signs emerge that the market is turning round.

The taxpayer-backed bank has cut the amount it will lend to £3m on a maximum of nine properties, compared with a previous limit of £6m on up to 18. Two years ago, the lending brands of both Lloyds and Halifax, which it took over earlier this year, would have advanced a total £14m.

The move could undermine investors’ attempts to pick up property bargains, as Cheltenham & Gloucester, Birmingham Midshires and Scottish Widows turn away customers with large property portfolios.

David Hollingworth at L&C, a broker, said: “This is the last thing the market needs. Lloyds’ decision leaves slimmer pickings for landlords hoping to make the most of low [interest] rates and property values.”