Many landlords remain committed to the buy-to-let sector despite government interventions and a wider housing slowdown, new figures show.
Despite the adverse impact that tax and regulation changes are having on the buy-to-let market, the latest mortgage data reveals that more landlords are remortgaging their existing properties, which suggests that they have no plans to sell up anytime soon.
According to UK Finance’s latest mortgage trends update, buy-to-let remortgages picked up in August, increasing by 4.5% compared with the corresponding month last year to 13,800 with a lending value of £2.2bn.
“Buy-to-let remortgaging saw relatively strong growth in August, due in part to the number of two year fixed deals coming to an end,” said Jackie Bennett, director of mortgages at UK Finance. “Many existing landlords remain committed to the market.”
But amidst recent tax and underwriting changes new buy-to-let home purchase levels continued to fall, dropping by 13% on last year’s figure to 6,000 mortgages in August.
Liz Syms, CEO at Connect for Intermediaries, said: “The continued pressure on landlords is mirrored in the number of buy-to-let purchases.”
However, there are still plenty of landlords looking to increase their portfolios, according to Syms.
She added: “We are seeing an increase in the number of portfolio landlords looking at longer-term fixed rate mortgages, which is manifest in the increase in remortgages in the month.
“With more products available, for longer-terms, this is a trend that is likely to continue, at least until we are more certain about the outcome of Brexit negotiations.”