Buy To Let Lending Suffers A Slump
Fewer landlord investors took out a new BTL mortgage in December, leading to the continuing slump in mortgage activity, one organisation reports.
According to UK Finance, just 5,100 new buy to let mortgages were agreed in December, which is down 5.6% on December 2017's figure.
The industry body says that the income tax crackdown for landlords, along with stamp duty increases, led to new mortgages worth £700 million being agreed in December - that's a drop of 12.5% on the year before as fewer BTL landlords look to buy an investment property.
In a report, the organisation has revealed that last year investors completed 66,400 new buy to let purchases, which is 11.5% down on the year before.
New buy to let remortgages being completed
However, December saw 12,400 new buy to let remortgages being completed, that's a rise of 25% over 2017.
The chief executive of estate agents haart, Paul Smith, said: "While it is disappointing to see more drops in BTL purchasing, it is encouraging to see that buy to let remortgaging has reached a record high as landlords keep faith in the market.
"Whilst mortgage rates are at rock bottom, now is the time to act as landlords can lock themselves into a great deal."
Tenant demand rises in London - but home to rent numbers fall
Meanwhile, it's been revealed that tenant demand is rising in London because the number of rental properties available is falling.
The figures from Foxtons highlight that new prospective tenants registering last year with them reached 175,000 people - that's the highest ever level that the firm has registered.
However, the figures also reveal that the supply of available rental homes is moving in the opposite direction.
Foxtons says that the number of properties available to tenants at the end of last year fell by 13% compared with the year before.
Big rise in the number of renters registering
A spokeswoman for the firm said they had seen a big rise in the number of renters registering over the course of last year, compared with 2017.
As a whole, the number of tenant registrations in London grew by 8%, led by those applicants in Zone 2, which saw a 13% jump in demand.
Stock levels fell over this period by 11% which, Foxtons says, offers a potential benefit to existing and new landlords with property for rent in the capital.