Home > Mortgages > Mortgage Data
High demand leading recovery for BTL: CML
Lending in the buy-to-let market is still subdued but recovering from its 2009 lull, the Council of Mortgage Lenders has claimed.
Figures from the trade body on the amount of buy-to-let mortgages in 2011 showed there were 123,000 advances, compared with 94,000 last year.
The CML said that during the fourth quarter of 2011, 34,800 buy-to-let mortgages were advanced, valued at £4bn, and accounted for 11 per cent of gross mortgage lending.
Paul Smee, director of the CML, said: “Buy-to-let lending continues to perform well. 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.”
Jonathan Samuels, chief executive of London-based adviser Dragonfly Property Finance, said: “Buy-to-let is nowhere near the giddy heights of 2007 but these latest figures confirm that it is on its way back.”
