Decline in mortgage lending is good news for landlords
Published: 13-Mar-2008
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Buy-to-let landlords stand to benefit from the current economic climate, as buyers face greater difficulties in trying to get themselves onto the property ladder.
The impact of the credit crunch and tightened lending criteria are continuing to have an effect on the UK mortgage market, according to figures released by the Council of Mortgages Lenders (CML) on Tuesday (March 11th).
It was revealed that mortgage lending was down in January this year, dropping to a total of 50,300 loans in that month.
This represents a decrease of 19 per cent from December, where 62,000 loans for house purchase were taken out.
In addition, the January 2008 figure shows a year-on-year decrease of 34 per cent.
Michael Coogan, CML director, commented: "The wholesale funding markets remain largely closed and mortgage funding still remains constrained.
"This is now having a discernible impact on lending criteria and the ability of first-time buyers to get into the housing market."
The decline in the number of mortgages being taken out could put increased demand on the private rented sector.
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