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UK seeing ‘sustained shift’ away from buy to let

UK seeing ‘sustained shift’ away from buy to let


The UK is seeing a ‘sustained shift’ away from buy to let, according to one analyst, following new figures released by UK Finance.

According to the figures, gross lending in the buy to let market totalled £2.9 billion in September, a month on month fall of 9%, while the number of BTL mortgages fell by 8% month on month.

Lea Karasavvas, managing director of Prolific Mortgage Finance, said; “Both homeowners and landlords took early hints from Mark Carney, so September represents the tail end of the rush to remortgage on low rates while they lasted. However, owner-occupiers and landlords are not on the same page. Homeowners have been grabbing low rates while they can while the response from landlords has been far more muted.

“This demonstrates a sustained shift as many turn their backs on the market. Landlords are waving the white flag after a severe tax bashing from the Treasury over the last two years.

“This is a statement of intent. Being a landlord is not a hobby, it’s an investment that must pay or it’s simply not worth it. The number of remortgages by homeowners has risen faster than for landlords in the last year and, more recently, is falling slower.

“Many landlords are effectively signalling that the good times are over and they don’t intend to stick around long enough to justify committing to a new deal.”

The fall in BTL lending is being attributed to recent reforms to the sector, including the Section 24 phasing out of mortgage interest tax relief and the increase in Stamp Duty, and the decision earlier this month by the Bank of England to raise interest rates.

Lucien Cook, Director of Residential Research at Savills, said; “When you get that combination of interest rate rises and the loss of tax relief, you’re much more likely to see it hit home.”

Struggling with mortgage debt? We can help.

Many landlords have found their finances coming under increasing strain recently as a series of changes to the buy to let market come into effect. The introduction of Section 24, which phases out mortgage interest tax relief, the increase in Stamp Duty on second homes, the cap on tenants’ deposits and stricter lending rules for banks have all impacted the performance of landlords’ investments.

At Landlord Debt Advisory we offer bespoke solutions for landlords struggling with unaffordable property debt, whether it’s rental properties in negative equity, mounting arrears or an interest only term ending with no way to repay the capital.

One of our recent clients, Gary, said; “I had been sold two pig in a poke properties for part of my retirement fund that left me having to keep pumping money to maintain them for suitable tenants. I had been stressed out for the last 10 years trying to keep on top of this investment. Last April I was left with no way to resolve this bad investment as more money was now required to replace the boiler and sort out the damp.

“Coming close to my retirement date I had to walk away. After being recommend to Landlord Debt Advisory and discussing my situation with them, my life has now change 100% for the better. They saved me 64% of my total debt to the lender including the mortgage arrears and legal fees. I had no dealings with my lender, selling both properties and all the legal expenses, as this had been dealt successfully by the team. I would highly recommend anybody out there who need advice regarding debts to talk to Landlord Debt Advisory, as my regret is not doing it sooner.”

Contact us now on 0161 222 4311 or go to our website to arrange an initial free, no obligation consultation. 

Our team of property debt specialists offers a range of possible solutions based on your situation

Whatever your circumstances, the process starts with a case review. We will obtain all of the original documentation on your mortgage from your lender so we can assess your needs and work out the best way for us to help you

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