Buy To Let Updated:
The buy-to-let mortgage industry continued to grow during the first quarter of 2013, according to latest data from the Council of Mortgage Lenders (CML).
A total of 33,500 mortgages were advanced to landlords and investors in quarter one, up from 32,300 during the first three months of 2012, whilst gross lending in the sector soared from £3.7 billion to £4.2 billion over the same period.
The majority of buy-to-let loans issued during quarter one were for remortgage cases, with 15,360 advances approved worth over £2 billion.
The number of landlords in arrears by over three months dropped, with buy-to-let arrears accounting for 8.3% of all cases, down from 9% in quarter four 2012. Rates of repossessions in the sector also reduced, falling to the lowest level since quarter two last year.
Whilst activity in the residential mortgage market has remained subdued, the buy-to-let market has grown over the past couple of years, mainly as a result of unprecedented high demand for rental accommodation. Director-general of the CML, Paul Smee, said: "The buy-to-let mortgage market is performing well, against a backdrop of robust landlord and tenant demand for good quality rental property.
"As the private rented sector looks likely to be the longer-term tenure in which more households may live in the future, lenders are actively looking at how they can best evolve their future lending for those landlords who may wish to offer longer-term tenancies to their tenants, although concrete landlord demand for such borrowing is not yet clear," he added.
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