Buy-to-let lending predicted to rise in 2018

Buy-to-let lending predicted to rise in 2018

The Intermediary Mortgage Lenders Association (IMLA) is predicting that buy-to-let lending will pick up significantly in 2018. Over the last 12 months, the buy-to-let market in the UK has taken a bit of hit as landlords and buy-to-let investors respond to the additional levy on Stamp Duty and the tax changes which mean that they can no longer deduct their mortgage interest from their taxable income.

Both these measures have impacted on the amount of buy-to-let lending that has so far taken place in 2017. Data from the IMLA suggests that there will be a 6% fall in lending compared to last year as landlords and investors take stock of the situation and review the return on investment they are getting out of the rental market.

However, the IMLA expect this to be a short-term decline and that buy-to-let lending will rebound again in 2018 with lending levels expected to hit £40 billion plus as investors return to the market. Peter Williams, Executive Director of IMLA said:

“The buy to let market suffered under the changes introduced by the Cameron government, but ultimately demand for private rented accommodation means that lending volumes are likely to rise again in the future. While the changes have certainly made things more difficult for landlords, property remains an attractive and comparably stable investment, which will support long term growth in the sector.”