In figures obtained from the Bank of England, lending shares in the buy-to-let sector have risen by 1.5% since last year. While the first quarter of 2017 saw buy-to-let shares account for 12.6% of new lending, the figure steadily increased to 14.1% in the first three months of 2018.
The data also shows new loans have increased by 3.3% year-on-year to reach £64.2 billion.
While landlords have faced a multitude of changes over the past few years, it appears the buy-to-let sector has remained impressively resilient. There are a number of reasons to why, as Liz Syms, chief executive officer of Connect for Intermediaries, explains:
"There are still very good returns to be had in the buy-to-let market, despite changes to the tax regime, portfolio landlord, EPC and the forthcoming tightening of HMO rules."
"Some people who are not serious about buy-to-let and not prepared for all the changes will have left the market," she added. "However, landlords that have well run properties kept to a good standard will still be making profits and, as a result, are continuing to expand their portfolios, so I think this is what we are seeing in these figures from the Bank of England."
The Bank of England revealed the share of first-time buyers has now fallen to 19.6%. What's more, the outstanding balance in arrears (money that is owed and should have been paid earlier) has now reached £14.8 billion, while the share of loan-to-value mortgages also decreased.
Jeremy Leaf, former residential chairman at RICS, shared his thoughts on the disappointing figures:
"The reduction in the proportion lent to first-time buyers when buy-to-let investor borrowing increased for the first time in more than a year may be a sign that the government’s intention to ‘level the playing field’ between the two groups is not working."
We also provide support for first-time buyers, such as advice about 95% LTV mortgages and the Help-to-Buy government scheme. As an Independent Mortgage Adviser, we offer the best first-time buyers rates—and the majority of applications will not incur a broker fee!
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