The number of buy-to-let purchases continues to fall, as reflected by a further drop in new buy-to-let mortgage lending.
Fresh data from UK Finance shows that landlord investors took out just 6,100 new buy-to-let mortgages for acquiring properties in November, down 9% compared with the same month a year earlier.
The total value of BTL loans dropped 11.1% to £800m, according to the data from the industry body.
Meanwhile, there were 15,000 new buy-to-let remortgages completed in November, up 9.5% compared with the corresponding month in 2017.
“In the buy-to-let market new home purchases remain subdued, while remortgaging continues to grow as landlords lock into attractive rates,” said Jackie Bennett, director of mortgages at UK Finance.
At the start of last year, UK Finance predicted £12bn of buy-to-let lending for residential property acquisitions in 2018, but with tax changes eroding landlords’ returns fewer people are investing in the buy-to-let sector.
Consequently, the trade body estimates that lending will likely hit just £9bn this year.
“This is undoubtedly the impact of various tax, regulatory and legislative changes that have happened to landlords in the buy-to-let sector,” she said.
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.