The latest UK Finance household lending and deposits data reveals that gross mortgage lending across the residential market dropped in January, suggesting that more prospective buyers are currently choosing to rent, amid Brexit uncertainty and the fact that there are fewer properties for sale.
The figures show that there was £21.6bn worth of lending last month, some 1.5% lower than the corresponding month last year.
With more people opting to rent, the Private Rented Sector continues to prove crucial to solving the housing crisis in this country with buy-to-let landlords playing an increasingly important role in providing homes to millions of people, as acknowledged by John Goodall, CEO of Landbay.
He said: “This dip in [UK Finance household] lending is unquestionably linked to homeowners and landlords putting off the decision to put their property on the market. This ‘wait and see’ approach, entirely understandable in the current economic climate, is exacerbating the chronic undersupply of available housing.
“The current stalemate means that it falls to landlords, both private and institutional, to pick up the pieces and provide quality housing for those who would be buyers in more normal economic conditions.”