Landbay: Coming months will see housing market change

The coming months could see considerable change for the housing market, John Goodall, CEO and co-founder of Landbay, has warned.

Earlier today the Council of Mortgage Lenders released figures showing that gross mortgage lending totalled £21.4bn in March.

However it was much less than the £26.3bn lent in March last year, when there was a surge in buy-to-let borrowing as landlords rushed to buy homes ahead of a rise in stamp duty.

Goodall said: “Mortgage lending held up well in March, as borrowers continued to take advantage of the more friendly purchasing conditions with record low interest rates and loan-to-value deals.

“First-time buyers and remortaging activity drove lending volumes up as lack of supply and stretched affordability continued to impact the market.

“The coming months may tell an entirely different story for the housing market. Following the recent changes to buy-to-let tax relief and the introduction of tighter underwriting criteria, it is becoming even more complicated for aspiring homeowners and landlords to access the finance they need.

“What we now need are some firm commitments from the government to tackle the housing crisis. Positive measures aimed at encouraging the development of high quality rented properties will target the lack of supply across both sales and lettings in the housing market.”

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