Many lenders are open, but it is true to say that currently not many loans seem to be approved by them.
This is because not only can their criteria be tough but many of them have particular likes and dislikes which have a negative impact on their lending appetite.

Some examples across the board:

• no ex-council flats
• development of more than six stories  
• too well spread to manage 
• too condensed thereby creating a concentration risk 
• too expensive per unit 
• too cheap per unit 
• above retail, too near noise, too far away from centre, etc.

A party who knows the market understands these restrictions imposed by some lenders but not others.

However the important areas are still:

Lettings

Some lenders insist that the units have a history of lettings, whilst a few will assume that they will let in demand locations.

Income Cover

Whilst lenders have differing formulas for determining this. In the main, in nervous lending times, a ten times multiple on gross rent is a good starting point - some will do better and some worse, depending on other factors such as location and loan to value.
Many lenders will consider that high value single lets are too risky. 

Loan to value (LTV)

Using the income cover criteria above it is very seldom that any loan will be in excess of 65% / 70% of value which is the maximum comfort loan in the current market. 
When purchasing lenders look at purchase price, not value. 

Covenant Strength  

Where the property is let to an undoubted tenant on a long lease, such as an HA, University, Strong Care provider, Local Authority, etc. then the above criteria would relax quite considerably. 

100 million Pounds committed "War Chest" for further acquisitions

1.15 billion Euros for residential acquisitions in Germany