Landlord purchases jump in Q1 as first-time buyer sales fall

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Thursday 4th of June 2020

Buy-to-let purchases jumped in the first quarter of 2020, but first-time buyer sales dropped, leaving overall mortgage lending flat, according to UK Finance.

The figures were largely unaffected by the coronavirus and lockdown, which hit in the final couple of weeks of the three months to the end of March.

During that period buy-to-let activity increased seven per cent, with 5,600 purchase mortgages in March compared to 5,300 in the same period a year earlier. Remortgage landlord deals were flat.

However, first-time buyer numbers continued to decline, a trend which has been in play since October last year.

In March there were 26,410 mortgages, compared to 28,210 a year earlier.

There were stark regional differences in overall mortgage lending, with London and the South, performing better than the rest of the country.

Arrears were lower in the first quarter, compared to a year earlier – with payment holidays not included in the data. 

Why Maple Leaf Financial Services Ltd.