Buy-to-long mortgage numbers rose by almost 40%at the end of 2024, which increases the hope of revival for this sector of the housing market.
There were 52,648 New Buy-to-Let Loans Progress in quarter 4 (Q4) of 2024 compared to the previous three months. This was an increase of 39.2% in the number of loans and 47.2% in terms of value, according to the new data from British financing.
In the meantime, the data showed that the average rental yield was 7% – higher than the 6.74% in the same quarter in 2023. And the average interest rate All new buy-to-let loans were lower, with 5.09% in Q4 2024, which was 0.13 basic points lower than in the previous quarter, and 0.61 basic points lower than in the same quarter of 2023.
Russell Anderson, commercial director of mortgages at Paragon Bank, a buy-to-let-money shooter, said that the figures showed a ‘reviving’ buy-to-long market in 2024, with strong growth in both purchase and remortage activities,
“The data supports our opinion that landlords sharply manage their rental companies,” he added, “borrowed to invest in higher yields or refinancing to proactively manage the debts about portfolios and improve the private housing stock.”
It was not all good news, the data showed that 700 buy-to-do mortgage ownership were taken in Q4 2024. Although this was unchanged compared to the previous quarter, it was an increase of 29.6% at the same quarter a year earlier.
However, when it came to overdue payments, there were 12,610 in Q4 2024 in Q4 2024 Buy-to-Let Mortgages In overdue payments with more than 2.5% of the outstanding balance. This fell by 390 compared to the previous quarter and 7% than in the same quarter a year earlier.
Harry Goodliffe, director at HTG Hypotheken Speaking through the newspaper agency, said: “The increase in the assets is a grim memory that some landlords have to deal with difficult times. With the market that constantly shifts, it is crucial for landlords to adjust and stay ahead of the curve to protect their investments.”
However, he also said that the 40% increase of new buy-to-long loans ‘was great to see’. “It shows that trust in the market is still strong,” he said, “despite the challenging economic climate.
“The fact that the rental income remains stable is also encouraging, which means that landlords have a reason to be optimistic.”