The buy-to-let-agenda in 2017 – Charles Haresnape

by: Charles Haresnape, group managing director, mortgages, Aldermore Bank
  • 19/01/2017
  • 0
The buy-to-let-agenda in 2017 – Charles Haresnape
Many will be looking at the performance of the buy-to-let market in the coming year. From the introduction of the reduced tax relief this coming April to the second phase of PRA affordability rules which come in September, the next year is likely to see many landlords looking at how to get the most out of their portfolio.

From September, any landlord who owns four or more mortgaged buy-to-let properties will have to submit income and mortgage details on all of them every time they refinance one, or purchase a new property, which is likely to prove a headache for those owners and brokers. As such, remortgaging is likely to remain strong over the coming year, with a 10% rise already seen in October month-on-month.

There is also likely to be a continued pick-up in the number of landlords restructuring their portfolios into limited companies. While still affected by the Stamp Duty increase, being a corporate entity means landlords don’t incur the changes to mortgage tax relief, which some have predicted may price some landlords out of the market. In line with this, 100,000 buy-to-let mortgages were given to limited companies in the first nine months of the year, double the total number in the whole of 2015.

The 25% fall in year-on-year lending in October to buy-to-let landlords looks fairly dramatic, but it is worth taking into account that the final quarter of 2015 was unusually buoyant, particularly as many property owners will have brought forward planned purchases ahead of the Stamp Duty changes in April 2016. Prior to the 3% increase in Stamp Duty on second homes in April 2016, the number of approved buy-to-let mortgages shot up by a staggering 226% in March.

This year we will see a slower, but upward trend, in house prices, and it will probably be the year we see the price of an average property in the UK break the £300,000 mark. For landlords, we are likely to see a lower level of activity in London, but some regions, such as the North of England, should see a faster rate, influenced by increased activity from landlords seeking relatively better yields.

There are 0 Comment(s)

You may also be interested in


Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.


Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions

Read previous post:
Canary Wharf by night
Major banks shun PRA’s get-out clause for remortgaging landlords

High street lenders are taking a wait-and-see approach to their treatment of buy-to-let remortgage lending, with some choosing not to...