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Rush in BTL activity sees FTB enquiries slide
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Latest figures released by comparethemarket reveal that the ongoing buy-to-let surge is seeing many first-time buyers squeezed out of the market.
Many would-be buyers are struggling to make their way out of rental accommodation and onto the housing ladder.
Growth
Data from the analysis shows that the proportion of buy-to-let mortgage enquiries rose by 4.4% to stand at 18.2% of the total number of enquiries during the last year. Annually, the proportion of enquiries for initial buyers fell by 3.7% to hit 23.5%.
In January of this year, there was little sign of the market reducing. Year-on-year growth for the month stood at 16%, with a 62% increase in comparison to December.
Despite buy-to-let investors rushing to beat the new stamp duty deadline on all purchases from April 1st, comparethemarket said there is, ‘little expectation’ of buy-to-let enquiries outstripping the number of first-time buyer enquiries.
Rush in BTL activity sees FTB enquiries slide
Risk to stability
Jody Baker, Head of Money for comparethemarket.com noted, ‘the buy-to-let market has been subject to both extensive discussion and criticism over the past year with even the Bank of England’s Financial Policy Committee labelling it a risk to the UK’s financial stability.’[1]
Baker feels that, ‘this data only reinforces the view that over the past year, families and others looking to get a foot on the housing ladder are being priced out by landlords.’ Concluding, Baker said that it was, ‘great to see the Government take action in the Autumn Statement, but time will tell as to what the material impact will be on the market after 1st April.’[1]
[1] http://www.propertyreporter.co.uk/landlords/btl-boom-sees-ftb-enquiries-dr0p-37.html
