Risk to renters as loan to buy is predicted to fall.

A forecast shortfall in lending to landlords could squeeze the number of homes available for rent next year.

UK Finance, the mortgage lenders’ trade body, said the outlook for the buy-to-let sector in 2025 was “challenging” due to additional taxes facing landlords.

This is despite predictions that interest rates and, consequently, mortgage rates are expected to decline during the year.

Tenants have come under severe pressure in recent years due to rising rents and competition for available properties.

Falling mortgage rates in the second half of this year led to a “modest recovery” in the buy-to-let sector this year after a difficult 2023, according to UK Finance.

But, in this Latest annual forecasthe said Additional stamp duty on purchase of additional housesAlong with the existing regulations and taxes, the activity will be seen to shrink.

It predicts a 7 percent decline in mortgage lending for purchases and sales in 2025 compared to this year.

The National Residential Landlords Association (NRLA) has said that 31% of landlords are planning to sell their rental properties in the next two years due to additional cost pressures.

Property portal Zoopla said the average rental price was now £1,270 a month, which is £270 per month is more expensive. Compared to the end of the coronavirus pandemic.

Generation Rent, which lobbies on behalf of renters, said more breathing room should be given to renters who are facing the pressures of living on a budget.

However, rent growth has slowed as many have hit the affordability threshold.

As people looking to buy a first home are stuck renting, the latest forecasts offer some hope.

Falling mortgage rates, and rising wages, improved affordability for homebuyers later this year, and UK Finance expects this to continue until 2025.

It predicts a 10% increase in mortgage lending for home purchases next year, although some analysts have already called the forecast optimistic for lenders.

According to financial information service MoneyFacts, the most recent data shows that the average rate on a two-year fixed-rate mortgage is 5.47%. A typical rate on a five-year contract is 5.25%.

said The Nationwide, the UK’s largest building society Change in stamp duty This could create a volatile housing market for many buyers in England and Northern Ireland in the first half of 2025.

Further ahead, UK Finance said it expects many people to find it difficult again to afford to move or buy a new home in 2026.

Agents say there are some simple ways to secure a rental property:

• Start looking well before the tenancy ends and sign up with multiple agents.
• Pay slips, employment references and references from previous landlords
• Build relationships with agents in the area but be prepared to broaden your search
• Be sure of your budget and calculate how much you can offer.
• Be aware that some agents check properties on social media before listing them.

There are more points. Here And help with your rental rights. Here.