11 February 2010

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.”

ENDS

Editor Notes:

The Council of Mortgage Lenders’ buy-to-let lending statistics show that 93,500 buy-to-let loans were advanced in 2009, a drop of 58% on the 222,700 mortgages advanced in 2008.

About ARLA

The Association of Residential Lettings Agents (ARLA) was formed in 1981 as the professional and regulatory body for letting agents in the UK. Today ARLA is recognised by government, local authorities, consumer interest groups and the media as the leading professional body in the private rented sector. ARLA is a sister organisation to the National Association of Estate Agents (NAEA).

In May 2009 ARLA became the first body in the letting and property management industry to introduce a licensing scheme for all members to promote the highest standards of practice in this important and growing sector of the property market. Both ARLA and NAEA members are governed by Codes of Practice providing a framework of ethical and professional standards at a level far higher than the law demands, and both Associations have their own complaints and disciplinary procedures so that any dispute is dealt with efficiently and fairly.

For further information contact: NFOPP PRESS OFFICE

Tel: 020 3128 8181 E-mail: press@nfoppmedia.com