Buy-to-let remortgage activity up as purchase activity stagnates
There were more buy-to-let remortgages completed in December, as there were fewer new buy-to-let purchase mortgages, UK Finance’s Mortgage Trends Update has found.
There were 12,400 new buy-to-let remortgages completed in December 2018, 25.3% more than in the same month a year earlier. By value this was £2bn of lending in the month, 25% more year-on-year.
There were 5,100 new buy-to-let home purchase mortgages completed in December 2018, 5.6% fewer year-on-year. By value these new purchases made up £0.7bn of lending in the month, 12.5% down year-on-year.
Jackie Bennett, director of mortgages at UK Finance said: “Demand for new buy-to-let purchases continues to be dampened by recent tax and regulatory changes.
“However, the number of buy-to-let remortgages reached a record high of almost 170,000 last year, suggesting many landlords remain committed to the market.”
In 2018, there were 66,400 new buy-to-let home purchases completed, some 11.5% less than in 2017. The £9bn of new lending in the year was 15% less than in 2017.
In 2018, there were 169,100 new buy-to-let remortgages completed, 11.2% more than in 2017. The £27bn of new lending in the year was 11.6% more than in 2017.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “In welcome news, first-time buyers are taking advantage of reduced competition for smaller properties from buy-to-let landlords still reeling from recent tax and regulatory changes.”