Buy-to-Let Lending

2024 Q2

Published on 22/10/2024

• In Q2 2024 there were 51,459 new buy-to-let loans advanced in the UK, worth £8.9 billion. This was up 26 per cent by number (27.7 per cent by value) compared with the same quarter in the previous year.
• The average gross buy-to-let rental yield for the UK in Q2 2024 was 6.9 per cent, compared with 6.51 per cent in the same quarter in the previous year.
• The average interest rate across all new buy-to-let loans in the UK was 5.19 per cent in Q2 2024. This was 21 basis points lower than in the previous quarter, but 0.04 basis points higher than in the same quarter of 2023.
• Reflecting the movements in interest rates, the average buy-to-let interest cover ratio (ICR) for the UK in Q2 2024 was 196 per cent, up from 190 per cent in Q1 2024, and equal to 196 per cent a year previously.
• The number of BTL fixed rate mortgages outstanding in Q2 2024 was 1.4 million, 2.0 per cent up on a year previously. In contrast, the number of variable rate loans outstanding fell by 14.8 per cent to 565,815.
• At the end of Q2 2024 there were 13,570 buy-to-let mortgages in arrears greater than 2.5 per cent of the outstanding balance. This was up 51 per cent on the same quarter a year previously.
• There were 710 buy-to-let mortgage possessions taken in Q2 2024, up 33.8 per cent on the same quarter a year previously.