Buy-to-let mortgages need to `support the role of landlords'
Thu 19 May 2016
April's stamp duty increase for buy-to-let investors is already having an impact on the housing market, with thelatest figures from the Council of Mortgage Lenders (CML) estimating that that gross mortgage lending reached18.5bn in April, down 29% or 7.7bn compared to the previous month's lending total of 26.2bn.
The data doesnot come as a surprise given that many buy-to-let investors rushed to beat the tax hike before 1 April by bringingforward property purchases that would otherwise have taken place later in the year."The early rush we saw in thespring months is easing up and April marked an adjustment phase in the property market. But a reduction inlending is to be expected, and is certainly no cause for alarm," said Richard Sexton, director of charteredsurveyor e.surv.
David Brown, CEO of Marsh & Parsons, agrees that April's lending was never going to "live up tothe March hype".While April's mortgage figure is down compared with March, it is still 16% higher than the 16bnlent in April 2015, the CML said."Underlying annual growth in April shows a more sustainable path aside from anyshort-term fluctuations and the need for buy-to-let mortgages to support the role of landlords," said DavidWhittaker, managing director of Mortgages forBusiness