editor posted on March 04, 2010 06:35
February 2010 Council of Mortgage Lenders (CML) Report and Statistics
Reaction to CML buy-to-let lending statistics
In response to the Council of Mortgage Lenders' buy-to-let lending statistics for 2009, Ian Potter, Operations Manager of the Association of Residential Letting Agents (ARLA), comments:
“The contraction of the buy-to-let market in the past year will have a significant impact on the supply of stock within the Private Rented Sector. The Government now recognises the importance of the Private Rented Sector to the future of UK housing. The plethora of recent announcements concerning the regulation of agents, the register of landlords and the strengthening of HMO legislation have all helped but these statistics show just how much work has to be done to ensure that the PRS is a viable long term solution.
“There is some light at the end of the tunnel, with buy-to-let lending increasing for a second consecutive quarter at the end of 2009. It is encouraging that the amount of remortgaging in the buy-to-let sector is decreasing, and this indicates that investors are taking a more long-term and pragmatic view. However, 48% of landlords surveyed by ARLA say that they do not expect to acquire more buy-to-let properties during 2010. This is a stark reminder of the lack of available mortgage finance despite the billions of public money poured into the banking sector.”
“Unless the Government frees up further buy-to-let lending for responsible landlords who recognise the importance of investment in residential property, then the UK is going to struggle to house future generations.”
Reaction to CML repossession statistics
In response to the latest repossession statistics from the Council of Mortgage Lenders, Ian Potter, Operations Manager of the Association of Residential Letting Agents (ARLA), comments:
''The most emotive aspect of the recession has been the prospect of families losing their homes. The Government's initial response to the threat to Britain's homeowners' and tenants - was slow and disjoined but the statistics suggest that the worst case scenario has been avoided, for now, as many properties have been through the legal system without the lender taking repossession. The risk of repossession being enforced is still a threat for those homeowners and landlords.''
''We must not labour under illusions as the threat to the property market is ongoing and very real. The Government schemes to assist mortgage repayments must remain in place and a close watch kept on the market. ARLA's own research shows that rental arrears are at high levels and this is indicative that financial pressures on the public remain in place.
''If the Government can work with the mortgage lenders to ensure that everything is done to ensure that families can stay in their homes, then one of the most worrying consequences of the recession can be minimised.''
* Source Association of Residential Letting Agents (ARLA)