Loans to landlords have reached a five-year high, with the Bank’s low rates pledge predicted to propel further growth.
Lending on buy-to-let has raced ahead again; industry figures demonstrate that the value of loans were up 31% on the previous year.
The Council of Mortgage Lenders (CML) data showed £5.1bn was advanced to landlords in previous three months, up 21% on the first quarter. Bank of England Governor Mark Carney has said that rates will remain low until at least 2016, which makes the likelihood of growth within the sector evermore likely. This is partly due to mortgage costs for landlords, already low and falling, becoming more and more attractive. However, low returns on other assets including cash are also driving savers toward investments in property.
The largest lenders to landlords continue to be Nationwide Building Society, Lloyds Banking Group (through its BM Solutions division) and a secondary tier of players includingCoventry Building Society and Clydesdale Bank.
For advice on investment in the Huddersfield rental market, call Martin & Co Huddersfield (Letting Agent Huddersfield, Estate Agent Huddersfield & Property Management Huddersfield).