Risk To Renters As Buy-To-Let Lending Predicted To Fall
A forecast fall in lending to landlords could squeeze the number of homes available to rent next year.
Mortgage lenders' trade body UK Finance said the outlook was "challenging" for the buy-to-let sector in 2025 owing to extra taxes facing landlords.
This is despite predictions that interest rates and, in turn, mortgage rates are expected to fall during the year.
Tenants have faced intense pressure in recent years due to soaring rents and competition for available properties.
Falling mortgage rates in the second half of this year had led to a "modest recovery" in the buy-to-let sector this year following a tough 2023, according to UK Finance.
But, in its latest annual forecast, external, it said extra stamp duty on the purchase of additional homes, as well as existing regulation and taxes would see activity shrink.