Buy to Let
Landlords pushing back first-time buyers
Buy-to-let is booming, but the rise in enquiries for landlord mortgages is at the expense of first-time buyers
Buy-to-let is taking an increasing share of overall mortgage enquiries, but it’s taking it from first-time buyers, according to comparethemarket.com.
It said that the 4.4% growth of buy-to-let to 18.2% of all mortgage enquiries over the last year, came at the expense of first-time buyer interest, which reduced by 3.7% in the year to January to 23.5%.
The website said that this indicates the buy-to-let market has gained a chokehold over first-time buyers, as many struggle to get out of rented accommodation and on to the housing ladder.
Evidence indicates that if the market continues in its current direction, the number of enquiries for buy-to-let mortgages will outstrip the number for first-time buyer enquiries, which would be a blow to the Government’s home ownership drive. However, with the new Stamp Duty on buy-to-let purchases, there is little expectation that this will materialise.
Jody Baker, head of money for comparethemarket.com, said: “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. 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.
“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 1 April.”