Phil Rickards is head of BM Solutions
Well, it’s that much awaited time of year when the CML confirms the latest figures detailing the activity of the buy-to-let market following the strong year-on-year growth seen in December.
Overall for 2013 BTL gross lending totalled 160,900 loans, up 23% compared to 2012. As expected, we’ve seen further growth in the sector, which has landed at an impressive £20.7bn up 32% on a solid performance in 2012.
There has been plenty of commentary in the last couple of years about BTL recovery and whether it will be sustainable over the medium to longer term.
What makes the 2013 numbers even more impressive for me is that this growth has been achieved alongside a plethora of government initiatives aimed at stimulating residential sectors of the housing market and although BTL would have benefited from the Funding for Lending scheme I’m sure, it’s operated in tandem, very nicely complimenting the mainstream sectors of our market.
2013 was also an excellent year for BM Solutions and although we are not in the habit of talking exact numbers, it’s safe to say that we were delighted with the support we received from intermediaries.
We’ve taken great pride over the last 12 years in being able to support and lead the BTL market through some very good times and some pretty tough times.
To make absolutely certain we continue to support the sector, 2013 was also a year in which we enhanced some of our risk controls in particular around Let to Buy, an area of concern for the industry in general. It’s no doubt in all of our interests to continue writing quality business and the additional checks we’ve put in place should help us do just that.
There will no doubt be much speculation as to further growth in our sector of the market but with demand for good quality housing still outstripping supply, more people may enter the BTL market for the potential of longer term capital growth, there is nothing to suspect that further growth will follow an excellent year just passed.