There has been a drop in buy-to-let lending, but the decline is less dramatic than the general purchase market, according to the latest UK Finance Household Review.
The data shows that buy-to-let lending fell 11% year-on-year. This compares with a 48% fall in general house purchase activity.
Richard Rowntree, managing director of mortgages at Paragon Bank, commented: “The figures show that the buy-to-let market was significantly impacted by coronavirus during the second quarter, as was the broader mortgage market, but we are confident that the sector can make a strong recovery in the second half of the year.
“Landlord demand for investment is robust, no doubt boosted by the stamp duty holiday, but also because of long-term fundamentals underpinning the demand for good quality privately rented homes.
“Overall buy-to-let lending during the first half of the year was down by 11% in value compared to 2019, which considering the impact of the pandemic on the housing market isn’t as bad as originally feared and the buy-to-let sector is again proving its defensive qualities. Activity rebounded after the housing market reopened in May and we should start to see that reflected in an increased level of completions across new purchases and remortgages during the second half of the year.
“People have had a once in a lifetime opportunity to re-evaluate how and where they want to live. This is creating record levels of activity across both the residential and lettings markets and transactions are buoyant generally. No doubt this will eventually settle down to levels more in line with the historical average, but that doesn’t appear to be any time soon.”
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Borrowing money to speculate is a high risk activity. Entrants should look at the downside as well as the upside.
That goes for anyone starting a business.
If they didn't gamble on it being successful they wouldn't bother.
ALL business is an informed gamble mostly.
Capitalusm is alm about gambling.
Without the gamblers the wirld would still be in the Stone Age!
Paul you are using the wrong word, there is a calculated RISK in business, a gamble is what sad pricks do in betting shops, lottery , and scratch cards etc, there is one very big difference between the two, and the two kinds of people, common sense.
But have you and others noticed today ? NO SEB, I do hope the chap is not unwell today.
Housing is a lifetime requirement and therefore a long-term investment. Those with the financial acumen, resources and resilience will continue to prosper despite what others may predict and hope for.
Thank goodness for those too scared and too poor to invest. It makes it easier for those who will brave a potentially short term rough ride for a pretty safe long term gain.
@andrewtownshend
Yes of course you are correct.
All those in business are calculated risk takers.
So perhaps entrepreneurs; certainly not gamblers or speculators.
Of course society doesn't consider LL as such entrepreneurs even though they all are.
I would much prefer that LL are called Private Housing Providers compared to Social Housing ones.
The term LL seems to wind so many people up.
So those who provide Private Housing solutions are surely entrepreneurs!?
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