IMLA comments on CML gross mortgage lending figures, March
“Although the initial buy-to-let lending rush has passed, repercussions will continue to ricochet through the market. Other efforts to manage demand among landlords, like reductions to mortgage tax relief, will impact on those looking to expand their portfolios. At IMLA we expect the tax increases to spur more remortgaging as landlords look at other ways to keep costs down. However, importantly, the changes will mean the sector then shrinks – the private rental sector will continue to grow perhaps more slowly to meet the demand of a rising population, continued affordability problems and the dearth of new housing supply.
“While the failure to constrain price rises and to build more homes has been the biggest block to increased homeownership, other factors have also taken their toll. Areas beyond the ‘mainstream market’ have been less well-served in the more tightly regulated environment that has emerged post-financial crisis, and more consumers are falling into this category. For example, we have seen a substantial lift in self-employment in the last five years as the labour market has evolved, but those working for themselves have had fewer tailored financial support products to choose from. However, lenders are expecting mortgage availability to improve for these types of clients in 2016. First-time buyers in particular are identified as the segment of the market with the biggest growth potential.* In the near future, lending levels may look lower after the BTL rush, but over the long-term the market is moving forward on a sustainable and positive upward trajectory.”
For further information please contact:
Tora Turton / Will Muir, Instinctif Partners
Tel: 0207 427 1422 / 29 / firstname.lastname@example.org
The Intermediary Mortgage Lenders Association (IMLA) is the specialist trade body representing the interests of lenders who market their products primarily through brokers, rather than direct or through a branch network. IMLA provides a unique opportunity for senior industry professionals to meet on a regular basis to discuss key current initiatives and contribute actively through IMLA and other forums, such as the Council of Mortgage Lenders.
IMLA was formed in 1988 as the Association of Mortgage Lenders and was instrumental in the creation of the CML. It changed its name to IMLA in 1995. Subsequently IMLA helped bring the Association of Mortgage Intermediaries (AMI) into being and was instrumental in bringing the mortgage advisers qualification CeMAP to fruition. More information can be viewed at the IMLA website