Help - Deputy governor Sir Jon Cunliffe, wonders if he has spotted a bubble inflating

[AtW]

"Deputy governor Sir Jon Cunliffe, a former Treasury mandarin, wonders if he has spotted a bubble inflating.

Buy to let (BTL) loans has grown by an average of 6pc per year since 2008, he says, accelerating to 11.5pc last year.

In 2007 around 8.5pc of all mortgages went to landlords. Now almost 15pc go into BTL purchases.

British banks have more than £215bn of BTL loans on their books, up from £146bn in 2009, according to the Council of Mortgage Lenders (CML).

That pace of growth means BTL loans are almost entirely driving net growth in the mortgage market, with owner occupier numbers holding flat. Sir Jon asked banks what their plans were – surely a giveaway that they should be on their best behaviour. Nonetheless, the lenders told him they have big plans ahead.

“At around the start of 2016, lenders were planning to grow their gross buy-to-let lending by, on average, almost 20pc per annum over the next two years, with some challenger banks and smaller building societies planning to grow their buy-to-let books at a much faster rate,” says Sir Jon."

Source: Is a buy-to-let bubble the next scandal in housing?

Can you help Sir Jon?

[PurpleGorilla]

"Deputy governor Sir Jon Cunliffe, a former Treasury mandarin, wonders if he has spotted a bubble inflating.

Buy to let (BTL) loans has grown by an average of 6pc per year since 2008, he says, accelerating to 11.5pc last year.

In 2007 around 8.5pc of all mortgages went to landlords. Now almost 15pc go into BTL purchases.

British banks have more than £215bn of BTL loans on their books, up from £146bn in 2009, according to the Council of Mortgage Lenders (CML).

That pace of growth means BTL loans are almost entirely driving net growth in the mortgage market, with owner occupier numbers holding flat. Sir Jon asked banks what their plans were – surely a giveaway that they should be on their best behaviour. Nonetheless, the lenders told him they have big plans ahead.

“At around the start of 2016, lenders were planning to grow their gross buy-to-let lending by, on average, almost 20pc per annum over the next two years, with some challenger banks and smaller building societies planning to grow their buy-to-let books at a much faster rate,” says Sir Jon."

Source: Is a buy-to-let bubble the next scandal in housing?

Can you help Sir Jon?

OMFG this is pure arse vomit.

WTF is the BOE going to do about it?

**** all!

[bobspud]

Actually I think you will find that BTL property is starting to trickle back on to the market. We are looking for a new place near bath and have seen several houses come on the market in recent weeks either as a BTL ongoing business or with tenenets in place

[BrilloPad]

Actually I think you will find that BTL property is starting to trickle back on to the market. We are looking for a new place near bath and have seen several houses come on the market in recent weeks either as a BTL ongoing business or with tenenets in place

Who would want to pay 3% extra stamp duty to buy?

Maybe the bubble is already over?

Hopefully now the next biggest threat will be closed. You have to have a NA number to buy private property.

[bobspud]

Who would want to pay 3% extra stamp duty to buy?

Maybe the bubble is already over?

I think they might have popped the balloon with a thermonuclear bomb...

We are looking at property with the possibility of an annex they also carry the 3% charge on top.

I think there will be a correction of property over the coming months that will focus on turning homes full of BTL flats back into houses and now unattractive homes with granny annexation problems.