As the BTL market declines, FTB’s are on the rise

The Mortgage Advice Bureau has revealed that the data suggests there has been an increase in first time buyers as the buy to let market decreases. The property price for FTB’s has significantly dropped which indicates the demand from BTL buyers has declined. Figures show that BTL properties have reduced by 12.7% year on year, showing there is a lower demand in this sector. Comparing this to FTB’s, where there has been an 8% increase year on year as reported by the Council of Mortgage Lenders.

Brian Murphy, Head of Lending for Mortgage Advice Bureau commented: “This is the first full month of data for 2017 and as such, provides us with an opportunity to review market activity where all lenders regulated by the Prudential Regulation Authority have had to operate under the new buy-to-let underwriting regime.

During 2016 there was a mixed picture in terms of adoption of the more stringent lending criteria for investors, with some lenders adopting the new practices only weeks before the new requirements were implemented, whereas others had introduced the changes some months earlier. As a consequence this allowed buy-to-let investors an amount of ‘wiggle room’ for several months to shop around and find slightly more flexible terms when arranging their lending. With lenders now operating on a more stringent basis when underwriting buy-to-let borrowers, this is levelling the playing field between buyers who are borrowing to fund the purchase of their first home and investors who are borrowing to fund investment.”

You can read the full article published in Property Reporter 

Image Credit Bethany Opler on Unsplash

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