October saw value and number of buy to let loans increase

The Council of Mortgage Lenders (CML) has released data analysing market activity during October 2014; showing an increase of eight per cent in the number of buy to let loans given between September and October.

Compared with October of last year, there represents a two per cent rise with 19,000 buy to let loans taken out this October.

Total lending equated to £2.7 billion with 9,900 of the loans given as advances for house purchases and 9,500 given for remortgages.

The market has also witnessed an increase in buy let values; both month-on-month and annually. Values were up eight per cent on September with a rise of 29 per cent also recorded between October 2013 and October 2014.

More detailed analysis of the data reveals the number of buy to let loans granted for house purchase were up by 13 per cent compared to this September and up 20 per cent on last year.

These loans had a total value of £1.2 billion; a rise of 10 per cent from September and 28 per cent from last October.

The number of loans taken out for remortgaging purposes was up 23 per cent from October 2013 and represented a value of £1.4 billion – 26 per cent more than in 2013.

The data from CML also shows an increase in lending to first time buyers and home movers. There were 12 per cent more first time buyers in October than in September, and 14 per cent more than in October 2013.

A total of £4.4 billion was advanced to first time buyers in October this year and lending to people who were moving home strengthened between September and October, with a rise of 10 per cent recorded.

Paul Smee, Director General of the CML, commented on the positive growth seen in the market this year. He identified the changes seen in the industry but also commented on the “remarkable” stability among home purchase and the consistent growth in buy to let lending.

He concluded that “overall the market appears to be showing a positive direction of travel going into the New Year”.

To see more changes in yearly property purchases and house prices please see Jeni Browne's article on September's data.