Buy To Let Updated:
The number of properties being purchased with buy-to-let mortgages rose during 2011, helping to increase the supply of privately rented homes in the UK .
The number of mortgages advanced in the market totalled 124,000 last year, the strongest seen in the buy-to-let sector since 2008, figures from the Council of Mortgage Lenders (CML) show.
Buy-to-let lending amounted to £14.1 billion last year, although this is still down historically.
For instance, during 2008 the number of buy-to-let mortgages was 222,700 with a value of £28 billion.
In the previous year, almost 350,000 buy-to-let mortgages worth £45.7 billion were advanced.
During the last three months of 2011, a total of 34,800 buy-to-let mortgages (of which 15,600 were remortgages) were advanced, with a combined value of £4 billion.
This was 'virtually identical' to the volume of business in the third quarter (34,300 loans worth £4 billion) but up on the fourth quarter of 2010 (26,300 loans worth £2.9 billion).
While numbers are down from the height of the market, the CML said that the market is 'clearly continuing to recover from its low point in 2009'.
Buy-to-let mortgages account for nearly 13% of the total outstanding value of mortgages in the UK , and buy-to-let lending represented nearly 11% of total gross mortgage lending in the fourth quarter of 2011.
"Buy-to-let lending continues to perform well," commented Paul Smee, director general of the CML.
"Demand for rented property remains high, so the rationale for buy-to-let remains strong, and there is little reason to foresee any change to this positive outlook for the sector.
"These figures do not suggest that buy-to-let is crowding out first-time buyers; more that it is performing a really important role within the overall housing market.
"The benefits of the availability of good quality, private rented housing should not be overlooked, especially as there are many households which need the flexibility and mobility that the private rented sector is well placed to provide."
A fifth of landlords plan to take advantage of the increased availability of , with terraced housing the most popular type of home.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.