“The news today that the buy-to-market saw a flurry of activity in the run-up to the April deadline will be unsurprising to most in the industry, with anecdotal evidence over the past month reporting the rise in lending levels correlating with buy-to-let lending. While we can expect a calmer series of figures to be released over the coming months, it is unlikely that we will see a significant long term dip in buy-to-let activity despite the new stamp duty rates as supply pressures continue to make the private rented sector a strong investment.
“Supply remains the single largest constraint on the market, particularly in the capital, and despite progress being made, demand pressures are likely to support the private rented sector for years to come. Solving the issue of rising rental costs will only ultimately be served by increasing the number of properties available. The construction industry currently faces a variety of obstacles to achieving building targets, with a recent report estimating that at current levels of employment, the UK would need 106% of all bricklayers, and 73% of all architects working exclusively on housing to build 250,000 homes per year. With the average asking price for a first-time buyer home rising 6.2 per cent in May compared to April, the private rented sector remains a vital part in the housing market, a fact which does not look like it will be changing any time soon.”
For further enquiries, journalists can contact:
Rachael Snelling, Aldermore
Phone: 0208 1853 102
Johnathan Priestley, Cicero Group
Phone: 0207 297 5971
Notes to Editors:
Aldermore Group PLC is a specialist lender and savings bank offering straightforward products to Small and Medium-sized Enterprises (SMEs), homeowners, landlords and individuals, who we believe are often poorly- or under-served by the wider market.
Aldermore has no branch network but serves customers and intermediary partners online, by phone and face to face through its network of regional offices located around the UK.
Building on its core values of being reliable, expert, dynamic and straightforward, Aldermore aims to deliver banking as it should be.
Established in 2009, Aldermore has grown significantly. At the end of March 2016, lending to customers stood at £6.5 billion and customer deposits totalled £6.2 billion.
For more information, please visit www.aldermore.co.uk.
Aldermore Bank PLC is an operating entity of Aldermore Group PLC. In March 2015, Aldermore Group PLC’s shares (ALD.L) listed on the Main Market of the London Stock Exchange.
Aldermore Bank PLC is regulated by the Prudential Regulation Authority and the Financial Conduct Authority and is registered under the Financial Services Compensation Scheme.