Gross lending in the buy-to-let mortgage market grew in the third quarter for the first time in two years, according to data published by the Council of Mortgage Lenders (CML).
At £2.1bn, lending was 10% higher than in the previous three months. Buy-to-let loans also saw their first increase in two years, from 21,600 to 23,700.
The number of outstanding buy-to-let loans grew to 1,205,000, representing 11% of all mortgages by the end of the quarter and the value of outstanding buy-to-let mortgages increased by 2.5% to £144.2 billion.
However, the number of properties taken into possession rose in the third quarter, from 1,400 to 1,600. Over the same period though there was a sharp decline in the number of arrears cases in which a receiver of rent was appointed, from 2,500 down to 1,700.
”At this stage, the recovery is modest – but the figures show that buy-to-let is here to stay,” said CML’s Director General, Michael Coogan. “Buy-to-let lenders are among those facing some of the biggest challenges in raising mortgage funding, so the improved figures are all the more welcome.
“With funding for social housing under pressure, the private rented sector has a strong future. Mortgage lenders will have an important role to play in it, and will continue to help improve choice and standards for private tenants.”
For assistance with your buy to let purchases call Mark Sadler at kenneth elliott + rowe solicitors on 01708 757575 or email firstname.lastname@example.org