Buy-to-let mortgage lending falls

Market declines by over 18%

September saw a sharp fall in buy-to-let mortgage lending, compared to the same month last year. This is according to UK Finance, a finance and banking trade association.

The association sees this a direct response to changes to changes to regulations affecting the private rented sector, such as reducing landlords’ tax relief and stiffer mortgage requirements.

The month saw 5,200 new buy-to-let home purchase mortgages, which is 18.8% fewer than September 2017. By value this was £700 million of lending in the month, 22.2% down year-on-year.

Meanwhile, remortgages completed in September dropped by 0.8%, compared with the same month last year, to 12,300. By value this was £2 billion of lending in the month, the same year-on-year.

While this might seem alarming, the industry association also noted that mortgages to first time buyers and those for home-movers also fell compared to last year.

UK Finance’s Director of Mortgages, Jackie Bennett, says:

“Overall remortgaging for both residential and buy-to-let properties have levelled out after a period of strong growth. This reflects the number of fixed rate loans reaching maturity. Buy-to-let home purchases have eased again in September, suggesting lending in this market remains subdued as a result of recent tax, regulatory and legislative changes.”

For more information

www.ukfinance.org.uk/mortgage-market-softens-following-period-of-strong-growth/