CML: BTL lending down 13%

There were 15,300 buy-to-let loans in August, representing lending of £2.1bn. The number of loans and the value of these loans was down 13% compared to July. Compared to August 2013, this was a 6% increase by volume and 11% by value.

Within the overall total of buy-to-let loans, 8,400 were advanced in August for house purchase and 6,700 for remortgage. The number of buy-to-let house purchase loans was down by 13% compared to July but up 9% compared to August last year. This totalled £1bn in value, down 17% on July but up 16% on August last year.
 
The number of remortgage loans decreased compared to July, down 14% and down slightly by 1% compared to August last year. These loans had a total value of £1bn, down 17% on July but up 4% on August last year.

Paul Smee, director general of the CML, commented:

“The lending climate had a glass half full, glass half empty feel about it in August. On the one hand it saw a decline in all lending types month-on-month, which would suggest a levelling off of the market, with remortgaging remaining flat. Yet, on the other hand, we saw the highest August house purchase lending levels since 2007, and the recent Bank of England Credit Conditions Survey expects an upward trend in remortgaging in the final months of the year. Overall, these figures give no support to any fears of a developing bubble in housing.

"This has been a year of major change, and the market has shown significant resilience and responsiveness to the changing environment, improving the availability of lending without compromising financial stability, as the Bank of England's assessment last week highlighted."