Following the publication of the latest monthly mortgage lending data from the Council of Mortgage Lenders today, which revealed a 61% increase year-on-year in lending to landlords, our CFO Derek Mochan made the following comments:
The Stamp Duty stampede was a big contributor to the significant year-on-year increase in gross mortgage lending to landlords in February. Property investors up and down the country understandably wanted to avoid the additional Stamp Duty charge for second homes, and so battled to the very last moment to get the deals done and save thousands on their purchases. Inevitably, there will be a drop in activity from the April figures onwards.
For many wannabe amateur landlords, the sums simply don’t add up any more. The Government has introduced a range of measures which appear to be designed to professionalise the rental market, but its long-term impact remains to be seen.
However the desire to invest in property remains strong. Savvy would-be property investors will instead look to alternative ways to make money from property, without actually becoming a landlord.