The CML, this week, published its latest analysis of the buy to let market releasing new statistics on the geographical spread of buy to let and the types of property favoured by investors, highlighting that the past is no guide to the future.
Since the CML began monitoring the market in 1999, lenders have advanced more than 1.7 million buy to let loans. Over this time, as highlighted in the report, the private rented sector has seen nothing less than a renaissance – doubling in size over the past 12 years, following decades of steady decline.
But now it faces new challenges.
And it is these challenges, such as; market uncertainty and recovery, macro prudential regulation, the mortgage credit directive and changes to tax laws that the CML’s latest report looks to clarify.
The report concludes that over the last 15 years or so, buy to let has made an important contribution to the expansion of the private rented sector, helping to reverse many decades of decline.
However, it also highlights that there is considerable uncertainly over the impact of a series of regulatory and fiscal proposals on both buy-to-let and the private rented sector.
While the CML understands that regulatory authorities must have the right tools to address any macro-prudential risks, it urges the government and other authorities to consider the effects of uncertainty on the market and, in particular, the potential for a series of reforms to have cumulative, unintended and perhaps damaging consequences.
Earlier this summer in the opinion piece Buy-to-let: not a saint, not a sinner, the council urged that the debate about the future of the housing market should not become unnecessarily polarised, and should seek to avoid pitting home-ownership against buy-to-let.
As such, the CML is pushing for a policy approach that encourages all those who can make a contribution to help deliver more housing – in a balance of tenures that meets consumer needs.
The full report is published on the Council of Mortgage Lender’s website.