Decline in buy-to-let lending as changes bite
Tougher mortgage lending laws have led to a decrease in the number of landlords taking out buy-to-let mortgages, new data reveals.
UK Finance data shows that lending levels in November of last year dropped by 3.6% when compared with the same month the previous year.
Head of Mortgages at UK Finance, Paul Smee, said: “Declines in buy-to-let lending reflect the changing regulatory and fiscal environment for landlord businesses, where some landlords might be inclined to reappraise the viability of their portfolios.”
However, despite a slowing down of mortgages being granted to buy-to-let borrowers, the number of mortgages granted to movers, first-time buyers and those remortgaging their property actually increased in November.
Tax changes affecting the buy-to-let market have played a role in the drop in the number of landlords taking out mortgages, but earlier this month, the National Landlords Association (NLA) revealed that 20% of its members intend to sell off part of their portfolio in the year ahead.
The NLA said that this figure of 20% represents a 10-year high.
Landlords are encouraged to seek professional advice to help them maximise the potential of their property investments.
For more information, click the link below: