Buy To Let Updated:
High demand for rental accommodation led to a spike in buy-to-let lending during last year, with the total value of advances rising from £13.8 billion in 2011 to £16.4 billion.
A total of 136,900 loans were advanced to landlords last year, as hoards of potential buyers continued to find themselves locked out of the mortgage market, due to strict lending criteria and difficulty in raising funds for an adequate deposit.
Total gross lending within the buy-to-let sector accounted for 11.5% of overall gross mortgage lending during 2012, as landlords sought to expand their property portfolios to cope with rising demand from tenants.
Additional data from Moneyfacts.co.uk found that the number of buy-to-let mortgages in the market has increased considerably from 250 in February 2010 to 475 today.
The Council of Mortgage Lenders, which carried out the research, said: "Landlords who can demonstrate a strong track record are in a good position to expand their portfolios.
"However, new potential landlords need to tread carefully before entering the buy-to-let market; considerations such as landlord licensing reinforce the need for potential landlords to gain a strong understanding of the legal and operating environment."
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