Buy To Let Updated:
The recent resurgence in the buy-to-let market has continued to gather momentum after strong rental demand resulted in landlords snapping up more properties.
According to new figures from the Council of Mortgage Lenders (CML), around 34,500 buy-to-let mortgages were advanced in the three months to September, 16% more than the 29,700 agreed in the preceding quarter.
With the pick-up in buy-to-let lending that began in the second quarter continuing, the CML said both the number and value of loans agreed had reached their highest level since the final quarter of 2008.
Elsewhere amongst the data there was further good news in relation to the number of landlords who are behind with their mortgage repayments.
Indeed, in the third quarter, the number of buy-to-let mortgages more than three months in arrears declined from 28,300 (1.57% of the total) to 26,300 (1.45%).
Although there was a small increase in the number of buy-to-let properties taken into possession, as a proportion of all buy-to-let properties the figure remained unchanged, at 0.08%.
"With tenant demand remaining strong in the rental sector, some existing buy-to-let landlords have been expanding their portfolios and the growth that returned to the sector in the preceding quarter has continued," said Paul Smee, CML director general.
"The recovery of buy-to-let from its low point in 2009 has helped improve supply and choice in the rental market."
The positive CML data comes in the same week that it was revealed rental properties in the UK are being snapped up in record time.
With demand from tenants at a record high, Countrywide said the average property was being let within the space of 12.7 days.
Such is the clamour, an average of five tenants are competing for each available rental property.
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