19 May 2017
‘Sharp drop’ in buy-to-let lending
March saw a 79.5% year-on-year drop in buy-to-let house purchase lending, new industry data reveals.
During the month, £900 million was borrowed by landlords to fund house purchases, the Council of Mortgage Lenders (CML) said, compared to £4.4 billion in March 2016.
However, the figures for last spring were distorted by a jump in activity ahead of major stamp duty changes for landlords.
Elsewhere, the CML reported that March brought a return to form with regards first-time buyer and home-mover activity.
A sum of £4.9 billion was borrowed by first-time buyers in March, up 9% in year-on-year terms. And home-movers borrowed £6.2 billion for house purchases in total.
March also witnessed a 22% year-on-year increase in re-mortgaging activity, with the figure hitting £6 billion.
Yet despite these statistics, the trade body said homeowner house purchase activity was at its weakest level in two years during the opening quarter of 2017.