Equifax Touchstone data showed that year-to-date mortgage sales for January to August reached £25.62bn, an increase of 30% compared with the same period in 2014.
Despite figures increasing year-on-year, August buy-to-let sales dropped by 12.5% from the £3.77bn reported in the previous month, reflecting the holiday slowdown. But, this was considerably less than the drop in sales of 21% in the corresponding period last year, a sign of a much stronger buy-to-let market in 2015.
Buy-to-let investors have been attracted to the market by the continued economic recovery, low interest rate environment and enticing deals on offer from lenders. An increase in private rental rates of more than 10% since the start of the year has contributed to this growth.
The research, which covers 92% of the intermediated lending market, showed that residential sales for January to August were up 15% compared to 2014. Including the buy-to-let sales growth, total sales for the eight-month period were up by 18% year-on-year. The average value of a residential mortgage in August was £183,337 compared to £170,371 in August last year and £158,782 for buy-to-let compared to August 2014 when it was £143,546.
Iain Hill, relationship manager, Equifax Touchstone, said: “Despite a fall in sales in August, which was slightly more than expected given the robust nature of the market so far this year, it’s promising to see sustained year-on-year growth. The current favourable market conditions, supported by low interest rates and the greater capacity for lenders to offer mortgages, have encouraged borrowers to enter the market.”
