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TODAY'S OTHER NEWS

New investment in the buy-to-let market continues to fall

Activity in the buy-to-let mortgage market took a further dip in May as the combination of tighter tax and mortgage rules continues to take its toll on landlords.

Figures released yesterday by UK Finance show that there was a near 10% drop in new buy-to-let home purchase mortgages last month, as a series of reforms, including the phasing out of mortgage interest relief, continues to have a punitive effect on landlords.

Some 5,500 new buy-to-let home purchase mortgages were completed in May, down 9.8% compared with the corresponding month last year, reflecting the changing regulatory and fiscal environment for landlords. By value this was £0.7bn of lending in the month, 22.2% down year-on-year.

Many landlords are taking this opportunity to reappraise the viability of their portfolios. But while new investment in market falls, remortgaging levels continue a strong upward trend.

There were 14,600 new buy-to-let remortgages completed in the month, some 15% more than in the same month a year earlier. By value this was £2.3bn of lending in the month, 21.1% up on the same period last year.

Jackie Bennett, director of mortgages at UK Finance, said: “Purchases in the buy-to-let market continue to be constrained by recent regulatory and tax changes, the full impact of which have yet to be fully felt.”

  •  G romit

    No s**t

    and a s a consequence other headlines - rental property shortage, rent rising, homelessness soaring.

    This faux Tory Government (even New Labour wasn't this anti-capitalist) is totally incompetent, its meddling is making the housing crisis worse for the poorest in our society.

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    Sorry, old labour did exactly the same sort of thing back in Harold's time. It took Maggie's section 21 to re-create the letting market.
    I was young and getting married back then. We had to buy a cheap house and live like peasants for ten years.

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