Buy-to-let statistics

How many Brits are buying homes to let them out?

Updated

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If you’re looking to invest in property with the view of renting it out, a buy-to-let mortgage is a great way of borrowing the necessary funds to do so. We looked at the latest reports to see how many Brits are investing in property using this lending method.

Quick overview

  • In the last 12 months, 234,000 buy-to-let mortgage loans were taken out (June 2019)
  • Of these loans, 169,000 were remortgages and 65,000 were used for house purchases
  • Over £36 billion was borrowed on buy-to-let mortgages in the last 12 months
  • Of this £36 billion, £8.7 billion was used for house purchases and £27.3 billion for remortgages
  • Up to 4.5 million Brits could be living in buy-to-let properties in the UK

How many buy-to-let mortgages are there?

In the last 12 months over 234,000 buy-to-let mortgages were taken out in the UK. Of those 234,000 mortgages, 169,000 were remortgages and 65,000 house purchases. Explore the graph and table below to see how these have trended over the last 12 months. October saw the most new mortgages at just under 22,000 while December saw the fewest, with under 17,500 – almost 5,000 fewer than October.

Month House purchase (£) Remortgage (£) Total (£)
Jul-18 £800m £2400m £3200m
Aug-18 £800m £2300m £3100m
Sep-18 £700m £2000m £2700m
Oct-18 £800m £2500m £3300m
Nov-18 £800m £2400m £3200m
Dec-18 £700m £2000m £2700m
Jan-19 £700m £2500m £3200m
Feb-19 £600m £2300m £2900m
Mar-19 £700m £2100m £2800m
Apr-19 £700m £2300m £3000m
May-19 £700m £2400m £3100m
Jun-19 £700m £2100m £2800m

Value of buy-to-let lending

In total there was over £36 billion worth of buy-to-let mortgage lending in the last 12 months, which consisted of £8.7 billion in house purchases and £27.3 billion in remortgages. Explore the graph below to see how the value of buy-to-let mortgages has trended over the last 12 months. October 2018 saw the highest value of £3.3 billion in buy-to-let mortgage lending, which coincides with an increased number of mortgages taken out in this month (see above).

Month House purchase Remortgage Total
Jul-18 5,500 14,800 20,300
Aug-18 6,100 13,900 20,000
Sep-18 5,200 12,300 17,500
Oct-18 6,200 15,700 21,900
Nov-18 6,100 15,000 21,100
Dec-18 5,100 12,300 17,400
Jan-19 5,400 15,600 21,000
Feb-19 4,800 14,400 19,200
Mar-19 5,000 13,200 18,200
Apr-19 5,100 14,400 19,500
May-19 5,500 15,000 20,500
Jun-19 5,300 12,500 17,800

Who lives in buy-to-lets?

If you’re renting your property privately there is a chance you’re living in a buy-to-let property – so just how many Brits could be living in one? The latest figures from the Labour Force Survey show that 19% of Brits are living in private rented property, equal to 4 million people. Meanwhile, 64% of Brits are owner-occupiers (14.8 million) while the remaining 17% of Brits live in social rented properties (4 million).

Type of residency Percentage
Owner-occupiers 64%
Private rental 19%
Social rental 17%

How do buy-to-let mortgages differ?

A buy-to-let mortgage allows you to purchase a house with the intention of renting it out. For this reason, a buy-to-let mortgage differs slightly from a normal mortgage where your own personal circumstances along with the rental potential will be taken into account by the lender.

What is a buy-to-sell mortgage and how is it different?

Buy-to-sell mortgages are a short-term finance arrangement for buying property with the intention of selling it. They differ to buy-to-let mortgages in that you have no intention of renting it out.

Stamp duty

When buying a home you’re subject to stamp duty rates depending on the properties price. When purchasing a second home or a buy-to-let property you’re subject to an increased rate of stamp duty by 3%.

  • Stamp duty: Since April 2016, there is an additional 3% stamp duty on buy-to-let property purchases. This means the
    following rates apply:
Portion of property price Percentage to pay
£0 - 125,000 3%
£125,001 - £250,000 5%
£250,001 - £950,000 8%
£950,001 - £1,500,000 13%
£1,500,001 + 15%

Click here for more research. For all media enquiries, please contact:

Matt Mckenna
UK communications manager
T: +44 20 8191 8806
matt.mckenna@finder.com@MichHutchison/in/matthewmckenna2

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