Buy-to-let purchases down 1.8% year-on-year
There were 5,500 new buy-to-let home purchase mortgages completed in January 2019, 1.8% fewer than in the same month a year earlier, UK Finance’s Mortgage Trends Update for January has found.
However, the rate of decline is less than in January 2018, when there was a 5.1% year-on-year decrease in the number of buy-to-let home purchases. Remortgaging in the buy-to-let sector saw a similar drop-off in activity, with 15,800 new remortgages, a 4.2% drop from the year before.
Matt Andrews, managing director of Mortgages at Masthaven, said: “More could still be done for the buy-to-let market to encourage greater purchase activity.
“The slight softening in remortgaging figures for this sector suggests landlords remain committed to the market, greater product innovations, alongside a range of housing tenure that meets consumer needs, would certainly be welcomed so the sector can reach its full potential.”
Gareth Lewis, commercial director at specialist lender MT Finance, added: “There is still pressure on the buy-to-let space and this will continue unless something is done to ease all the restrictions that have been placed on landlords in terms of taxation and higher stamp duty.
“A review of stamp duty at least could stimulate movement in this area but perhaps this is wishful thinking, with the government loathe to make any changes.