Buy-to-let lending was also affected by seasonal factors in February with gross buy-to-let lending totalling 14,300 loans advanced, which was down 9% compared to January but up 39% compared to February 2013. The value of these loans totalled £1.9bn, which was again a decrease compared to January down 10% but up 46% compared to February 2013.
Similarly, buy-to-let lending for house purchases decreased to 7,500 loans advanced, down 7% compared to January but up 37% compared to February 2013. The loans totalled £900m in February, which was unchanged from January but up 58% compared to the same month last year.
Buy-to-let remortgage lending also decreased month-on-month to 6,600 loans, down 12% in volume compared to January but up 41% compared to February 2013. These buy-to-let remortgages had a total value of £1bn, down 9% compared to the previous month but up 64% compared to February 2013.
George Spencer, chief executive officer of lettings agent Rentify, says:
"Buy-to-let goes from strength to strength with nearly a 50 per cent uplift in the volume of lending compared with the same month last year. Despite the CML witnessing a seasonal dip compared with January, we have seen a dramatic uplift in business in this first quarter which is likely to filter through to stronger lending figures in coming months. Cheap mortgage rates and an increase in appetite among lenders are playing a part but it also shows that landlords being more savvy with their money, keen not to pay over the odds for advertising, letting and property management services.
"The Budget changes to annuities should further boost the buy-to-let sector with more pensioners choosing property as an alternative to pensions in retirement. Gross buy-to-let lending was £20.7bn last year and with lenders forecasting between £24bn and £27bn of lending this year, the sector shows no signs of slowing. Property is a good buy for those looking to diversify a pension fund and we've seen a surge in borrowers nearing retirement enquiring about buy-to-let. Of course, the challenge will be in finding funding but lenders are starting to come round to the idea of more flexibility when it comes to older borrowers with The Mortgage Works relaxing its attitude this week."
