Buy-to-let investors continue to dominate the UK housing market, as demand for rental properties continues to remain stable, according to latest data from UK Finance.
On a seasonally-adjusted basis, gross buy-to-let lending totalled £9.3 billion, up 11 per cent on the second quarter and four per cent on the second quarter of 2016. This equated to 60,000 mortgages, up eight per cent on the previous quarter and 6 per cent year-on-year.
UK Finance is a new trade association, which represents the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. Its data is an indicator of the health of the UK property market.
In September, buy-to-let activity continued to be driven by remortgaging, which accounted for more than two-thirds of total lending. Buy-to-let house purchase and remortgaging activity in September remained at a similar level seen since the change in stamp duty on second properties introduced in April last year.
First-time buyers borrowed £5.1 billion, down 11 per cent on the previous month but 4 per cent higher than in September 2016. This equated to 31,100 loans, down 10 per cent month-on-month and 1 per cent year-on-year.
UK Finances head of mortgage policy June Deasy said: “Although lending slackened in September, it remained higher than a year ago. Remortgaging was particularly strong, with borrowers seeking to lock into historically low interest rates in advance of the widely anticipated rise in Bank base rate at the beginning of November."