But growth was strong compared with June last year - 38% up by value and 23% by number.
There were 15,600 buy-to-let loans in June, representing lending of £2.2bn. The number of loans was the same as in May but the total value increased from £2.1bn. Compared to June 2013, this was a 23% increase by volume and 38% by value exceeding the rate of growth in home-owner house purchase lending.
Overall buy-to-let lending in the second quarter of 2014 increased slightly on the previous quarter but more substantially in comparison to the same period last year. Gross buy-to-let lending totalled 46,200 loans, an increase of 1% quarter-on-quarter but up 22% on the second quarter of 2013. The loans totalled £6.3bn, up 3% on the first quarter of 2014 and up 31% on the second quarter of 2013.
Within the overall total of buy-to-let loans, 8,200 were advanced in June for house purchase and 7,250 for remortgage. The number of buy-to-let house purchase loans was down slightly by 1% compared to May but up 24% compared to June last year. This totalled £1bn in value, unchanged from May but up 37% on June last year.
The number of remortgage loans increased slightly compared to May, up 1% but more substantially by 23% compared to June last year. These loans had a total value of £1.1bn, up 3% on May and 31% on June last year.
In the second quarter of 2014, there were 24,000 loans for buy-to-let house purchase, up 5% on the previous period and up 24% on the second quarter 2013. These loans totalled £2.9bn, up 8% quarter-on-quarter and up 37% on the second quarter last year.
Similar to the monthly trends, buy-to-let remortgage lending totalled 21,700 loans with a total value of £3.2bn, down slightly by 2% by volume and unchanged in value on the previous quarter. In comparison to the second quarter last year, total number of loans increased by 20% and the value of these loans increase this period by 29%.
Paul Smee, director general of the CML, commented:
“For the second month running since new FCA rules took effect, lending characteristics remain similar to the market beforehand. We now feel confident that, as we would hope, the MMR effect is more gentle dampener than hard brake. As we recently suggested in our revised forecasts, lending levels should continue to increase modestly over the course of the year, driven mostly by house purchase but with remortgaging also recovering.”
