First-time buyers outnumber BTL landlords by 3 to 1

First-time buyers outnumber BTL landlords by 3 to 1

Data released today by the Council of Mortgage Lenders shows lending to first-time buyers continues to outnumber buy-to-let purchases by three to one.

Lending to buy-to-let investors in 2015 totalled £37.9 billion, however, in 2015 only 41% of buy-to-let mortgages were for house purchase, a total value of £15.6 billion.

Compared with first-time buyer activity, which is back to pre-crisis levels, loans for purchases totalled £46.7 billion – the highest level of activity since 2007.

John Heron, Managing Director of Paragon Mortgages, said: “A common accusation levelled at buy-to-let landlords is that they have an unfair advantage over home-buyers. The data released today would suggest this is not the case, with buy-to-let purchases making up only 11.6% of all purchases. First-time buyers accounted for three times as many transactions as buy-to-let purchasers.


Total lending for buy-to-let whilst up 28% by volume on 2014, remains lower than it was in 2006, with remortgages accounting for 58% of all lending. In 2015 lending for new purchases was only marginally higher than it was in 2003.

The information from the CML also indicates strong credit quality in buy-to-let lending, with average loan to values moving lower, affordability strengthening and arrears at the lowest levels since before the financial crisis.

Despite claims of over-heating, effectively the sector is still recovering from the financial crisis and if we could draw the attention of Government and policy makers to any one argument this would be it.”

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Scott Garnet 06 Nov 2017

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richardrawlings
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What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
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I have recently read that the bungalows can provide social housing for elderly residents in London.

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Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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