The buy-to-let boom is showing no signs of abating, according to the latest report compiled by mortgage industry tech supplier, IRESS.
Data from the report indicates there was a 49% increase in buy-to-let activity, in comparison to the same period in 2015.
IRESS’s survey gives an insight into a number of aspects of the mortgage market. This is the report’s fifth year, with the 2016 installment assessing the responses of 18 lenders, with a total share of gross mortgage lending in 2015 of 68%. This amounts to £152bn of loans.
The buy-to-let sector saw the greatest annual growth with a rise of 49%. Mortgages provided to first-time buyers saw only a 0.7% increase, with loans to home movers actually slipping by 5.6%. This suggests that more people with landlord insurance are taking advantage of increased mortgage options and low interest rates.
Interestingly, lenders’ use of technology grew substantially over the last year. Mobile quote and principle decisions grew by 185%, case tracking by 72% and full mortgage application by 117%.
In addition, more lenders are offering direct and in-branch video links to mortgage advisers. As such, more options are available to consumers and enabling more sales per advisor to be dealt with.
Henry Woodcock, Principal Mortgage Consultant at IRESS, commented: ‘The most significant finding in the survey is the continued rise of the buy-to-let market. This sector has increased by more than 213% over the five years since the first IRESS Mortgage Efficiency Survey, but with the recent change of taxation around investment purchases for landlords, it seems unlikely that this stellar growth will continue. In the last year, loans to first time buyers have been fairly flat, suggesting that despite Government incentives and innovative products offered by lenders, the struggle to get on the housing ladder remains a significant challenge.’