Latest data shows buy to let market grew in November
Lending to landlords has increased more than any other borrower group, according to new figures
The latest lending industry data shows that landlords are the only group who are borrowing more than they were a year ago.
The research was released today by the Council of Mortgage Lenders (CML) with figures applicable for November 2014.
It confirms an overall slowing of activity within the housing market but highlights how the buy to let sector remains healthy as lending to landlords increased by nine per cent in comparison with last year.
£2.4 billion lent to landlords
Lending across all borrowers – including mainstream home buyers and first time buyers – fell during November when compared to the previous month, although the figures from the CML have not been seasonally adjusted to factor in a possible ascribed seasonal slowdown.
Focusing on activity within the buy to let market, the report claimed there were 17,000 buy to let loans issued during the month of November. Of those that were completed, 8,900 were advanced for buying a property and 8,600 were for remortgaging purposes.
This represents total lending worth £2.4 billion and a value increase of 14 per cent. In comparison, 25,900 loans were paid to first time buyers.
Strong markets for buy to let
Chief Executive of Mortgage Broker SPF Private Clients, Mark Harris, said that whilst the amount of first time buyers and people moving or remortgaging decreased between November 2013 and November 2014, buy to let continued to go from “strength to strength.”
“This is no real surprise with savings accounts paying pitiful rates, demand from tenants for rental property strong and lenders cutting buy-to-let rates," he commented.
Elsewhere Paul Smee, Director General of the CML, said he was not surprised to learn of the general drop in lending but claimed they are predicting rising lending rates in the near future and amongst a more stable market.
He explained that the easing back of activity is not overly unexpected due to the fact that there is usually a seasonal lending dip over the winter months. Major industry changes as well as more restrained market sentiment have also contributed to month-to-month fluctuations over the past year. He continued:
“Our forecasts are for gross lending to continue to grow over the next two years and this reflects our belief that there are more stable conditions in the market than a year ago.”
For more data and news about the improvements seen in the Buy to Let market during November 2014 see another article from Jeni.
16th January 2015
