The Bank of England Trends in Lending report for April has just been published, showing the continuing growth in the sector during 2015. Gross lending for Buy to Let was £27.4bn in 2014 and over the past five years this sectors share of the total lending market had reached 15% by quarter 4 2014, higher than before the financial crisis.
Commentators have attributed this growth to various factors. Whilst the impending election might be putting off prospective house purchasers, those looking at a buy to let property are aware that demand from tenants remains strong. Meanwhile buy to let mortgage rates have reached new lows. The mood amongst landlords is also generally up-beat with many recognising that they are now in a stronger financial position because their rents are more assured since their tenants are also seeing improvements in their finances.
This positive mood has been fuelled by an increase in rental payments – annual rent rises have accelerated in the past two years with the average rent across England and Wales now up 3.7% over the past twelve months. Demand has been buoyed by the decline in social housing and a continuing increase in demand for rental property.
Lynne McCaffrey, Head of Property comments:
“This data clearly shows the steady growth in those looking to purchase buy to let property. What we are finding is that these property purchasers are both discerning and demanding in their choice of conveyancer. As a specialist offering legal services to this sector we’ve gained significant experience in meeting the particular requirements of those investing in buy to let property and we’re poised to meet the challenge of increasing demand!”
Content correct at time of publication