"Buy-to-let lending, driven by remortgage activity, saw its strongest monthly lending level since the stamp duty changes on second properties introduced last April."
Gross buy-to-let lending increased in November to the highest monthly level since the stamp duty changes on second properties introduced in April, driven by remortgage lending. Over two thirds of buy-to-let loans were remortgages rather than house purchase.
Homeowners, first-time buyers and homemovers all saw a strong November, with lending up 5%, 4% and 7% respectively.
Paul Smee, director general of the CML, commented: "November lending reflected stable market conditions. Overall, 2016 did not match recent years in terms of house purchase lending growth, but lending remained resilient through regulatory and political change and aspirations for home-ownership remain strong in the UK. Our forecasts for 2017 may be less bullish than a year ago, as economic uncertainty weighs on the market, but we still predict 1.2m transactions and a slight increase in gross lending to £248bn.
"Buy-to-let lending, driven by remortgage activity, saw its strongest monthly lending level since the stamp duty changes on second properties introduced last April. Despite this, we expect buy-to-let lending levels in both 2016 and 2017 to prove lower than their 2015 recent peak as further tax changes take effect."
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: "The really good news about the CML figures is that they believe that property transaction numbers will be maintained next year. Responsible property people are much more interested in the number of sales rather than the boom and bust of prices. If there is more affordability and realism in the market, then that is very good news as far as we are concerned."
Mark Dyason, director of Edinburgh Mortgage Advice, commented: "The surge in buy-to-let remortgages is a result of landlords optimising their portfolios in advance of the new affordability regulations. Landlords were making hay while the sun still shone.
"Since January 1st, it has become a lot more difficult for landlords to finance their properties, especially at higher loan-to-values, and so a rush to remortgage in the final months of 2016 was inevitable.
"Remortgaging may have dipped compared to October but a large amount of fixed rate loans are coming to an end in the first few months of 2017 and we expect to see considerably more remortgage activity on the back of this.
"What's now very clear is that the absolute best rates have gone. Rates are still incredibly competitive, yes, but if people want to secure the best of what's left, they need to act and soon."
