MBE Leeds: £7bn of buy-to-let lending to disappear by 2018

Ryan Fowler

April 26, 2017

The size of buy-to-let will shrink by £7bn by 2028, Phil Riches, head of sales at Mortgages for Business has predicted. 

In 2016, the Council of Mortgage Lenders recorded £40bn of gross buy-to-let mortgage lending and Mortgages for Business is expecting a figure of around £38bn this year.

However this figure will drop £33bn in 2018. Of that Mortgages for Business Riches predicted that £6bn of lending would go to limited companies. That’s almost double the £3.5bn anticipated in 2017.

Leeds is best place to build homes

He attributed the shrinkage to the Prudential Regulation Authority’s requirement for tougher stress tests on landlords, plus reductions in tax relief and a 3% stamp duty surcharge on second homes.

Over the last few months a number of buy-to-let only lenders have announced moves into residential lending.

Riches was talking at MBE Leeds which is taking place today at the Royal Armouries.

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