Liquid error: wrong number of arguments (2 for 1) Mortgage lending jumps as buy-to-let investors bid to beat stamp duty hike | Marsh & Parsons Sales and Lettings Estate Agents London

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Mortgage lending jumps as buy-to-let investors bid to beat stamp duty hike

Thu 17 Mar 2016

11:33 am

Banks and building societies have reported their strongest mortgage lending total for the month of February since
2008 as buy-to-let investors rushed to beat a looming stamp duty hike.

From April 1 people buying second homes will face a three percentage point stamp duty increase on current rates
An estimated 17.6 billion-worth of mortgages were handed out last month, marking a jump of nearly one third
(30%) compared with February 2015, the Council of Mortgage Lenders (CML) said.

The CML said the latest figure is the highest for the month of February since 24.1 billion-worth of home loans
were handed out in February 2008.

From April 1, people buying second homes, such as landlords investing in buy-to-let properties, will face a three
percentage point stamp duty increase on current rates.

CML economist Mohammad Jamei said that lending is continuing on a "positive note", underpinned by wage
growth and competitive mortgage deals.

He continued: "But we think it unlikely that there will be any significant acceleration in lending. While there may
be a slight current boost to lending as some transactions seek to complete before the April 1 tax changes in the
buy-to-let sector, this is likely to be followed by a slight fall in activity.

"Affordability pressures continue to weigh on activity, as does the low number of properties coming on the
market, though this has been improving very recently."

The latest monthly lending total is still down by 5% compared with January 2016, when mortgage lending totalled
18.5 billion.

Peter Rollings, chief executive of estate agent Marsh and Parsons, said: "We're on the final stretch now before
the April 1 stamp duty changes come into force, and this has front-loaded buy-to-let lending into these early
months of the year.

"But once the deadline passes it will quickly revert to business as usual, and a subsidence in buy-to-let borrowing
will likely water down the growth in the mortgagemarket."

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