Buy-to-let mortgage sales increased by 10.8%, or £334.1m, in November compared with a month earlier, fresh analysis of the intermediary marketplace by Equifax Touchstone shows.
This is the fourth consecutive month of growth for buy-to-let mortgages, according to the research, while residential figures were also up, increasing by 2.5%, or £303.3m, on the previous month.
John Driscoll, director at Equifax Touchstone, said: “Mortgage sales in the UK have once again remained strong.
“Buy-to-let figures in particular have continued to gain momentum, enjoying positive growth for a fourth consecutive month, a trend we expect will continue given increasing difficulty in getting on the housing ladder and the subsequent increase in demand for rental properties.”
The analysis found that overall mortgage sales in the UK rose by 4.1%, or £637.4m in November, while year-on-year sales were up 3%, or £470.1m.
Most regions across the UK witnessed positive sales growth in November, led by Wales with an increase of 9.9%, followed by the South East (8%) and the Midlands (7.5%).
The North West and London were the only regions to see a decline in sales, falling by 2.3% and 2.6% respectively.
The data from Equifax Touchstone, which covers the majority of the intermediated lending market, reveals that the average value of a residential mortgage in November was £191,425, up from £190,627 in the corresponding period last year, while the average value for buy-to-let was £144,537, which is actually lower than the £163,115 achieved in the same month in 2016.
Driscoll added: “As we approach the end of the year, the outlook for the market remains unclear. The full impact of the recent rate hike on sales is yet to be fully felt and even the abolition of stamp duty for first time buyers announced in November’s budget was not received as wholly positive; some within the industry believe house prices may actually rise as a result, which could negatively affect mortgage sales.”
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