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Decline in buy-to-let lending as changes bite

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Tougher mortgage lending laws have led to a decrease in the number of landlords taking out buy-to-let mortgages, new data reveals.

Decline in buy-to-let lending

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: 

Landlord Today    

Neil Jennings

Neil background is in marketing and business development and has over 20 years of experience in the field. He runs Assetgrove and is involved in the marketing strategy for most of our campaigns.

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