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May 15, 2010

Buy-to-let funding revival imminent

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by Gill Montia

Buy-to-let funding revival imminent

Latest figures on but-to-let lending from the Council of Mortgage Lenders (CML) have prompted a comment from Mortgages For Business managing director, David Whittaker.

The CML recently described buy-to-let activity as “stable” but “low volume” with the number of mortgage approvals for landlords falling by 15% in the first three months of the year, to 22,000, and the value of lending down 12%, to £2.1 billion, compared with the previous quarter.

According to Mr Whittaker, the fall in activity isn’t as negative as it appears on the surface.

Bearing in mind the end of the stamp duty holiday in December, he explains: “We expected there to be a rush on buy-to-let mortgages at the end of last year and a subsequent drop in activity coming into Q1 2010.”

Mr Whittaker adds: “With new players about to emerge onto the scene more funding will be brought to the market and the prospect of fresh liquidity is excellent news.”

However, the managing director cautions that new money entering the market might not be reflected in quarter two’s figures, although activity numbers should look stronger moving into the second half of the year.

Mr Whittaker concludes: “The future is certainly looking a lot brighter for the buy-to-let sector.”

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