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‘BTL not crowding out FTBs’

Nationwide group distribution director Matthew Wyles has dismissed claims that increased buy-to-let activity is edging first-time buyers out of the owner-occupier market.

Speaking on a panel of mortgage lenders at the Sesame symposium, he said FTBs are re-strained by strict lending criteria and an inability to raise a deposit.

He said: “Some commentators have blamed first-time buyers’ inability to buy on buy-to-let investors. That is baloney. Property prices are not rising but rental values are, as demand for rental property outstrips that for owner-occupation. First-time buyers are reluctant to get into the market because of issues over criteria and the amount of equity needed to put down.”

Figures from the Council of Mortgage Lenders show BTL advances totalled £9.7bn in 2010, compared with £8.1bn in 2009. At the end of the third quarter of 2011, there has already been £9.7bn advanced.

Lloyds Banking Group sales director of mortgages Mike Jones predicted the BTL sector will grow by 20 per cent over the next year, meaning the sector could potentially reach up to £15bn in 2012.

Jones said: “We do not see the BTL and FTB markets crowding each other out. We do see healthy growth in BTL and there will be a 20 per cent bigger market next year.”


Capita sees uncertainty in valuing 75% of Arch cru assets

Capita Financial Managers has admitted there is “significant difficulty and uncertainty” in assessing the value of up to 75 per cent of the £149m-worth of assets held in Arch cru funds. Last week, Capita, the authorised corporate director of the CF Arch cru funds, published its annual accounts to the end of March. The accounts […]


Concern that builders could inflate their newbuild prices

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The Ministry of Justice is failing IFAs over claims chasers

How effective is the Ministry of Justice? We live in an age where a whole industry of complaint-handlers – or instigators as they are known at Highclere – seek to extract every last penny out of whichever unfortunate they select as a victim. In this vile endeavour, truth and veracity are the first victims. Some […]

Lloyds announces Horta-Osorio contingency plan

Lloyds Banking Group has announced David Roberts will assume the role of interim chief executive if the return of group chief executive Antonio Horta-Osorio takes longer than expected. On November 2, the bank announced Horta-Osorio would be taking a short leave of absence on medical advice but said he was set to return before the […]


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