You are here: Home - Mortgages - Buy To Let - News -

First time buyers take over from buy to let

Written by:
First time buyers are driving the housing market, according to new lending statistics from UK Finance.

They are taking over from buy-to-let investors, where demand is falling.

There were 25,100 new first-time buyer mortgages completed in January 2019, up 4.6% over the same month in 2018. This suggests some life remains in the residential mortgage market.

In contrast, there were 5,500 new buy-to-let home purchase mortgages completed in January 2019, 1.8% lower than in the same month last year. While the sector continues to decline due to tax and regulatory changes, the rate of decline is falling. Remortgaging also saw some falls.

Simon Heawood, CEO and co-founder of, said: “Over the last year, the government has introduced a raft of new tax penalties designed to make individual buy-to-let a far less attractive investment for landlords. These numbers show that the impact of those penalties has begun to bite.

Property confidence

“It’s not the case that people have fallen out of love with the property market though — 49% still think it’s the best way to save for retirement. However for increasing numbers of buy-to-let landlords, going at it alone doesn’t make financial sense anymore. We expect to see more and more investors looking for alternative tax-efficient routes into the property market, which allow them to access bricks and mortar returns, without the drawbacks of being a buy-to-let landlord.”

Matt Andrews, managing director of Mortgages at Masthaven, said the political uncertainty doesn’t seem to have impacted the first time buyer market: “Whether this be attributed to government initiatives such as the extension of the Help to Buy scheme, the ‘gifting’ of wealth from parents to children, or an increase in flexible products offered by lenders, this segment of the market is in good stead for whatever political and economic decisions are made in the coming weeks.

“More could still be done for the buy-to-let market to encourage greater purchase activity. The slight softening in remortgaging figures for this sector suggests landlords remain committed to the market, greater product innovations, alongside a range of housing tenure that meets consumer needs, would certainly be welcomed so the sector can reach its full potential.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • “Families tend not to talk about money and death. But if we don’t talk about these themes it becomes very hard to m…
  • RT @STEPSociety: UK Ministry of Justice abandons plan to increase EW probate fees, described by STEP’s Emily Deane TEP as a stealth tax on…
  • RT @STEPSociety: UK Ministry of Justice abandons plan to increase EW probate fees, described by STEP’s Emily Deane TEP as a stealth tax on…

Read previous post:
Resolve to be on top of your taxes this year

The end of the tax year is looming. If your taxes got on top of you in 2018/19, Brian Byrnes,...