Buy-to-lending bucking the trend

Buy-to-lending bucking the trend

New research from Equifax Touchstone reveals that buy-to-let lending actually went up in June. This goes against a lot of the news you read about the state of buy-to-let and it certainly bucks the trend when compared to standard mortgage sales. Buy-to-let lending rose by 3.2% in June which equates to £80 million.

Overall mortgage sales were down by £200 million in June and down 1.2% compared to May. Residential sales shrunk by 2% (£280 million). Many regions across the UK saw small dips in sales with Wales, North West England and the Home Counties faring the worse. Conversely, sales in Northern England and the South Coast of England went up.

Director at Equifax Touchstone, John Driscoll, said: “Although there has been a slight drop off in sales in June, these figures show how robust the mortgage market remains during a period of continued uncertainty. The ongoing low interest rate environment coupled with low levels of unemployment are keeping the market steady for the time being, limiting a more severe impact from political volatility. The long-term outlook for the market remains unclear as issues such as the weakened Conservative government play out but there is cautious optimism that healthy sales figures will remain throughout the summer months.”

It will be interesting to see if buy-to-lending continues to buck the overall trends.