Mixed picture in the CML property statistics – with BTL romping ahead
The release of statistics from the Council of Mortgage Lenders (CML) has revealed a picture of mixed fortunes for the different sectors of the housing market. On the one hand lending for buy to let property (BTL) has increased by 22% when compared with a year ago – mostly due to a jump in buy to let Remortgage activity.
On the other hand the number of mortgages for first time buyers has fallen sharply. There were 22,700 new first time buyer mortgages in May 2015, a 16% fall when compared with a year ago. Meanwhile lending to homemovers was also lower when compared to a year ago. There were 26,300 mortgages advanced in May 2015, a 15% decrease on the number a year ago.
The CML commentators, in looking for explanations for these results pointed to higher house prices which have affected the ability of first time buyers to buy, although competitive mortgage rates do mean that first time buyers are paying the lowest proportion of their monthly income on mortgage repayments on record.
Head of Property Lynne McCaffrey comments:
“This data shows that there’s still so much financial pressure when you’re looking to buy your first home. That pressure seems to carry through to home movers too with those buying a house also diminishing in number.
“There seems to be no reduction in those deciding to purchase buy to let property although with the recent budget changes it may be that will change in the future.”
Content correct at time of publication