Buy-to-let renaissance continues to gather pace - Buy To Let - News - Moneyfacts


Buy-to-let renaissance continues to gather pace

Buy-to-let renaissance continues to gather pace

Category: Buy To Let

Updated: 14/12/2012
First Published: 10/11/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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.

Compare buy-to-let mortgage Best Buys

Can't find the right one in our Best Buys? Don't worry. If you are looking to borrow from £50,000 up to 80% of your home's value - speak to an expert Mortgage Adviser.

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Number of parent landlords on the rise

The cost of renting is on the rise, but would it cheaper if you were renting from your own parents? Many children of property moguls will hope so, and with the number of parent landlords on the rise, it’s something more and more could benefit from.

Landlords: BTL mortgage rates are still falling!

The cut to base rate has had a welcome impact on mortgage rates, and it isn’t only residential borrowers who are benefiting: buy-to-let (BTL) investors are continuing to enjoy a fall in rates, particularly those looking for a longer-term deal.

Landlords – are you embarrassed about being one?

Becoming a landlord is often touted as a way to secure valuable income and build a nest egg for the future, yet once that dream has been realised, many property moguls are actually embarrassed to admit their vocation.