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Uncertainty over buy-to-let market, warn lenders
Original Author: Rosalind Renshaw
Lenders have expressed concern over the buy-to-let sector, saying it is unclear how tax changes will affect it.
They have also expressed doubt as whether the Bank of England’s Financial Policy Committee should have powers to intervene over buy-to-let mortgage lending.
Trade body the Council of Mortgage Lenders said: “While buy-to-let has been a major source of growth in lending and transactions over 2015, near-term prospects for the sector are uncertain as a result of upcoming tax changes.
“The HM Treasury consultation on macro-prudential powers for the Financial Policy Committee over the sector was largely in line with our expectations, although we continue to question whether there is sufficient evidence to justify intervention.
“The uncertainty around buy-to-let is unlikely to dissipate soon, and we do not expect to have a clearer picture until early summer, once any impact of the stamp duty changes comes through in the data.
“The Bank’s Credit Conditions survey suggests demand for buy-to-let could be strong in the first quarter of 2016, as some transactions are brought forward to avoid the Stamp Duty hike before it comes into effect.
“Longer term, however, buy-to-let volumes are likely to fall over 2016 and 2017, returning to levels seen in 2014.”
The CML says that mortgage lending last year reached £203.3bn – the highest since 2008.
http://www.propertyindustryeye.com/uncertainty-over-buy-to-let-market-warn-lenders/
