Buy-to-let mortgage activity shows strong rise

15th January 2016

Home loans advanced to UK buy-to-let investors in November leapt 35% from a year earlier, ahead of key tax changes. The Council of Mortgage Lenders said the rise took the number of buy-to-let loans to 23,300, although this was down 6% compared with October. Landlords in England and Wales will have to pay a 3% surcharge on each stamp duty band from April, and in addition, changes being brought in over the next few years will alter some relevant tax breaks available. "Landlords may be disgruntled by the double whammy of tax changes and the impending hike on stamp duty, but they can't complain about some of the cheapest buy-to-let rates ever," said Mark Harris, chief executive of mortgage broker SPF Private Clients. The figures also revealed that £4.2bn of home loans were advanced to first-time buyers in November, a 14% rise on the same period a year earlier. Paul Smee, director-general of the CML, said: "As expected, mortgage lending activity eased back as the normal dip in the winter months began. There was still growth across all lending types in November compared to the year earlier, suggesting continued improvement."

BBC News (15/01/2016)   The Times (15/01/2016)