On a non-seasonally adjusted basis, gross buy to let lending was up by 16% in May compared to last month and by 12% compared to May 2016, new figures reveal.
The latest data from UK Finance shows that on a non-seasonally adjusted basis, gross buy to let lending reached £2.9bn in May, up 16% month-on-month and 12% year-on-year. This represents 19,100 loans, up 16% on April and 15% year-on-year.
The rise in buy to let lending was driven by strong remortgage lending, which accounted for over two thirds of all buy to let lending.
Commenting on overall lending figures for May, Paul Smee, Head of Mortgages at UK Finance, said:
“The apparent strong growth in mortgage lending in May might flatter to deceive. The relative weakness in lending last May following the stamp duty changes makes comparisons misleading. The seasonally adjusted data shows a less buoyant lending picture, with home buying activity remaining relatively unchanged month-on-month and remortgage lending gradually decreasing each month since January.”
On a seasonally adjusted basis, buy to let lending for house purchase was recorded at £900m in May, showing no change from the previous eight months. This equated to 6,500 loans, down 2% on a monthly basis, but up 35% year-on-year.
When compared to lending activity before the changes to stamp duty on second homes were introduced last April, May’s buy to let loan advances remain low.
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