However, look behind the numbers and it is clear that the buy-to-let sector is responsible for this resurgence rather than the re-emergence of first-time buyers.
It seems that disappointing economic growth, rising consumer prices, falling disposable incomes and an uncertain jobs market are weighing heavily on residential sales, deterring buyers from the commitment of a new home.
Yet, landlord activity is undiminished; indeed, it has revived.
What’s more, strong rental demand is likely to support the sector’s growth in coming months.
While the outlook for owner-occupiers is one of uncertainty and lenders’ criteria remain tight, for landlords and investors with cash to spare the picture is rather different.
Stagnant prices, rising rents and substantial yields have all contributed to increased activity in the buy-to-let market. Lenders have returned to the market and new ones have entered it for the first time, resulting in easing criteria and falling rates.
The Bank of England confirmed this picture in its Trends in Lending survey, a monthly snapshot of the mortgage market.
It found that demand for buy-to-let loans has surged since the financial crisis. The Bank said 600 buy-to-let products are now available, although admittedly this does compare with 3,600 before the crisis. Lenders abandoned the sector in their droves, but are, slowly and surely, returning.
So, what does all this mean for first-time buyers who are struggling to get on the housing ladder and boosting landlords’ profits in the meantime?
The Bank warned that any increase in buy-to-let lending is unlikely to fill the gap left by first-time buyers and that mortgage lending over the next few months is likely to remain depressed.
Lenders are trying to address this by offering ever-lower fixed rates, in an attempt to boost their lending numbers now we’re in the second half of the year.
Yorkshire Building Society launched a five-year fixed rate priced at just 3.49% for those with a 25% deposit, while most lenders are slashing two- and three-year fixes, as well as five-year money.
But, as usual, these deals are aimed at those with sizeable deposits, which is of little help to beleaguered first-time buyers.
Equity and deposit-rich borrowers are still the customer of choice for lenders and it seems increasingly as if landlords are joining them in the desirability stakes.
Let’s just hope that first-time buyers stay on the radar and that a greater number of high loan-to-value deals, with reasonable credit scoring, also play a part.
Melanie Bien is director of Private Finance
