YBS Commercial Mortgages say the amount it lent to commercial and professional landlords doubled to £600m last year compared to 12 months ago, according to Yorkshire Building Society’s annual report published today.
The unit, which targets business and buy-to-let investors, says loans to the private rental sector amounted to £413.2m — while lending to other sectors such as industrial property, retail property and the leisure industry hit £115.7m.
The arm says its loans base topped a record £1.5bn in 2022.
It says: “This comes at a time when demand for private rented housing is soaring, but the landlords who provide it are facing significant challenges in terms of funding availability, affordability, and a raft of new regulations affecting everything from how they are taxed, to how energy-efficient their properties are.”
Across the country, it lent £260.9m in London and the South-East, £127.6m in the Midlands, £77.6m in Wales and the South-West and £43.1m in the North.
Last week, the business launched a five-year fixed-rate loan for investors in commercial and industrial property investors.
YBS Commercial Mortgages managing director Tom Simpson says: “2022 was a real turning point for us in terms of realising our ambitions to help more landlords and small businesses to thrive in a challenging market.
“We have plans to deliver even more this year and beyond, with more than 750m available in funding, allowing us to support more clients who need us, with a continued focus on providing our award-winning personal service.
“In 2023, we’re focused on product development and analytics to determine further market opportunities, broker and client support, and customer journey improvements.”
Earlier this month, Yorkshire Building Society, reported that its annual profit before tax was £502.5m last year, up from £320m in 2021.
The group, which also owns Accord Mortgages and Chelsea Building Society, added that its mortgage balances increased to £43.7bn from £41.9bn in the year prior.
