24 February 2010

Conference time: 0845hrs – 1630hrs

Background

The CML compile and publish a range of statistics on the UK housing and mortgage markets including key data on mortgage lending, arrears and possessions and market segments such as buy-to-let. This unparalleled knowledge and insight into the important role housing plays in the economy is the basis on which this conference programme is built.

The detailed content will help all organisations, not just lenders, operating within the world of housing. The content discussed will be crucial to understanding current and future housing market conditions.

Chaired by Sue Anderson, head of external affairs, Council of Mortgage Lenders

Expert speakers will include:

• Michael Coogan, Director General, Council of Mortgage Lenders
• Rt. Hon John Healey MP, Minister for Housing and Planning
• Peter Williams, housing consultant and Chairman, IMLA
• Steven Hall, director, KPMG
• Bob Pannell, head of research, Council of Mortgage Lenders
• John Stewart, director of economic affairs, Home Builders Federation
• Rob Thomas, senior policy adviser, Council of Mortgage Lenders

Delegates currently booked on include:

• Technical director, Allied Surveyors
• Head of sales, Halifax Intermediaries
• Head of product delivery, HBOS plc
• Team leader, housing regeneration and third sector team, HM Treasury
• Business project manager, Legal and General Assurance Society

Cost:

£275 for members (VAT exempt)
£325 for non-members (VAT exempt)

Our event fees remain highly competitive with prices for members and associates not having increased since January 2007

Location:

The Westbury Hotel, Bond Street, Mayfair, London, W1S 2YF

This event is open to press

Nov 09
Gross lending in the buy-to-let mortgage market grew in the third quarter for the first time in two years, according to data published today by the CML. At £2.1 billion, lending was 10% higher than in the previous three months. The third quarter also saw a similar first increase in two years in the number of buy-to-let loans advanced, from 21,600 to 23,700. But the welcome recovery in buy-to-let lending was from a low base, with current lending volumes sharply lower than their peak in 2007.

The number of outstanding buy-to-let loans grew to 1,205,000, representing 11% of all mortgages by the end of the quarter (compared to 1,180,000 three months earlier). The value of outstanding buy-to-let mortgages increased by 2.5% to £144.2 billion.

Within the buy-to-let market, both lending for house purchase and remortgaging grew in the last three months. As with the mainstream mortgage market, however, house purchase lending was appreciably stronger. Remortgaging capacity was constrained by the unavailability during the quarter of any buy-to-let mortgages at over 80% loan-to-value (LTV). Landlords with existing mortgages at a higher LTV are therefore effectively obliged to stay on their existing lenders’ reversion rates. But with variable interest rates remaining low, it is relatively painless for them to do so and there is little pressure to re-finance.

Low borrowing costs are also contributing to a continued improvement in cases of buy-to-let arrears and the number of landlords facing enforcement action. For the third quarter in a row, there was a decline in the number of buy-to-let mortgages with arrears of more than 1.5% of the balance. In the last three months, the number has fallen from 22,900 to 20,500, representing 1.7% of outstanding buy-to-let mortgages.

The number of properties taken into possession rose in the third quarter, from 1,400 to 1,600, equivalent to 0.14% of all buy-to-let mortgages. Over the same period, however, there was a sharp decline – from 2,500 to 1,700 – in the number of arrears cases in which a receiver of rent was appointed, often as an alternative to seeking possession of the property.

Commenting on the newly-published data, the CML’s director general Michael Coogan said:

“At this stage, the recovery is modest - but the figures show that buy-to-let is here to stay. Buy-to-let lenders are among those facing some of the biggest challenges in raising mortgage funding, so the improved figures are all the more welcome.

“Future demand for housing in all tenures supported by lenders will remain strong, despite mortgage funding constraints and low construction rates. With funding for social housing under pressure, the private rented sector has a strong future. Mortgage lenders will have an important role to play in it, and will continue to help improve choice and standards for private tenants.”

Notes to editors

1. The Council of Mortgage Lenders’ members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11 million mortgages in the UK, with loans worth over £1.2 trillion.

2. The CML buy-to-let press release for the final quarter of 2009 will be published on 11 February 2010.

Contact details

Name: Bernard Clarke

Tel: 020 7438 8923

Email: bernard.clarke@cml.org.uk

Name: Sue Anderson

Tel: 020 7438 8924

Email: sue.anderson@cml.org.uk

Name: Sarah Robson

Tel: 020 7438 8922

Email: sarah.robson@cml.org.uk