In 2016, there have been substantial increases in house purchase and remortgage activity year-on-year. This reflects the sluggish market in early 2015, perhaps driven by election uncertainties. Buy-to-let has also seen substantial year-on-year increases, with particularly strong growth in remortgaging, a pattern which we have seen in the buy-to-let sector the past six months. Activity has been boosted by landlords seeking to complete purchases before tax changes in April. We do not expect activity to show such strong year-on-year growth later in the year.
Separate data released by the Bank of England this morning also showed that demand for mortgages increased over the the first quarter of the year, though, “demand for buy-to-let lending was expected to fall significantly,” in the second quarter according to the Bank.