{"id":196176,"date":"2024-12-16T12:07:30","date_gmt":"2024-12-16T12:07:30","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/12\/16\/risk-to-renters-as-buy-to-let-lending-predicted-to-fall\/"},"modified":"2024-12-16T12:07:31","modified_gmt":"2024-12-16T12:07:31","slug":"risk-to-renters-as-buy-to-let-lending-predicted-to-fall","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/12\/16\/risk-to-renters-as-buy-to-let-lending-predicted-to-fall\/","title":{"rendered":"Risk to renters as buy-to-let lending predicted to fall"},"content":{"rendered":"
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A forecast fall in lending to landlords could squeeze the number of homes available to rent next year.<\/p>\n

Mortgage lenders’ trade body UK Finance said the outlook was “challenging” for the buy-to-let sector in 2025 owing to extra taxes facing landlords.<\/p>\n

This is despite predictions that interest rates and, in turn, mortgage rates are expected to fall during the year.<\/p>\n

Tenants have faced intense pressure in recent years owing to soaring rent and competition for available properties.<\/p>\n<\/div>\n

Forecasts for 2025<\/h2>\n<\/p>\n
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Falling mortgage rates in the second half of this year had led to a “modest recovery” in the buy-to-let sector this year following a tough 2023, according to UK Finance.<\/p>\n

But, in its latest annual forecast<\/a>, it said extra stamp duty on the purchase of additional homes<\/a>, as well as existing regulation and taxes would see activity shrink.<\/p>\n

It has predicted a 7% drop in mortgage lending for buy-to-let purchases in 2025 compared with this year.<\/p>\n

The National Residential Landlords Association (NRLA) has said that 31% of landlords are planning to sell properties they rent out in the next two years, owing to extra cost pressures.<\/p>\n<\/div>\n

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Property portal Zoopla said the average cost of renting was now \u00a31,270 a month, which was \u00a3270 per month more expensive<\/a> than at the end of the coronavirus pandemic. <\/p>\n

Generation Rent, which lobbies on behalf of renters, said that more breathing space should be given to tenants facing cost-of-living pressures.<\/p>\n

However, the pace of rent rises has slowed as many hit an affordability limit.<\/p>\n<\/div>\n

Options for first-time buyers<\/h2>\n<\/p>\n
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People stuck renting when they want to buy a first home may be offered some hope in the latest forecasts.<\/p>\n

Falls in mortgage rates, and rising wages, improved affordability for those buying a home late this year, and UK Finance expected this to continue into 2025.<\/p>\n

It has forecast a 10% rise in mortgage lending for house purchases next year, although some analysts have already questioned this prediction as optimistic for lenders.<\/p>\n

The latest data shows the average rate on a two-year fixed rate mortgage is 5.47%, according to financial information service Moneyfacts. A typical rate on a five-year deal is 5.25%.<\/p>\n

The Nationwide, the UK’s biggest building society, said stamp duty changes<\/a> for many buyers in England and Northern Ireland could create a volatile housing market in the first half of 2025.<\/p>\n

Further ahead, UK Finance said it expected many people to again find it tough to afford to move or buy a new home in 2026.<\/p>\n<\/div>\n

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How to secure a rental property<\/h2>\n<\/p>\n
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Agents say there are some simple ways to make it easier to secure a rental property:<\/p>\n