Buy-to-let lending rises ahead of changes

Encouraging new figures have suggested that buy-to-let lending leapt to its highest level since before the financial crash in the final three months of 2014.

Statistics from quarterly data collated from nearly 300 mortgage lenders shows that £10bn was lent to landlords in the last quarter of 2014. This was in comparison to £7.7bn at the same period one year previously.


The quarterly submission, Mortgage Lenders & Administrators Return (MLAR) is compiled by regulated lenders, including banks, building societies and credit unions. Data covers both regulated and unregulated mortgage transactions.

Lending for buy-to-let purposes also rose from 15.6% in quarter three to 15.9% in quarter four of 2015.

Outstanding balances on landlord mortgages during the final quarter of last year rose to £178.2bn, which represented 15% of total residential balances.

For overall house buyers, including buy-to-let and first-time buyers, the proportion of lending stood at 69%. Gross advances rose by 20% year-on-year to stand at £43.7bn.

Buy-to-let lending rises ahead of changes

Buy-to-let lending rises ahead of changes


Landlords are rushing to beat the stamp duty land tax increases, coming into effect on April 1st 2016. This, coupled with the fact that interest rates remain extremely low, is enticing more investors than ever before to the sector.

During the final quarter of last year, average interest rates slipped by five basis points to hit 2.71%.

In addition, changes to tax relief and wear and tear allowance are other significant contributing factors to this rush in buy-to-let activity.

If you are landlord looking to purchase a buy-to-let investment, make sure you are aware and keep abreast of the regulation chances. What’s more, ensure that you take out the sufficient landlord insurance. Even the best looking tenants on paper can suffer unforeseen problems, so make sure you are covered.

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