Buy-to-let lending to increase 25% in 2014

Nearly three in five landlords expect to expand their portfolios over the next six months, a poll of 278 property investors by specialist broker Mortgages for Business showed.

Mortgages for Business has predicted a 25 per increase in buy-to-let lending in 2013.

Lending to buy-to-let investors is now 135 per cent higher than the trough in 2009 (£8.5bn) but remains well below the 2007 peak of £45bn.

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But research by Mortgages for Business showed landlords with the most properties already in their portfolio are the most likely to expand in early 2014.

Of landlords who already own between one and 10 properties – often classed as part-time landlords – 54 per cent intend to expand over the next six months.

Of those with more than 11 properties – traditionally seen as professional landlords – 66 per cent intend to bolster their portfolios in the new year.

David Whittaker, managing director at Mortgages for Business, said: “Despite easing conditions for owner-occupiers and first-time buyers, the prevailing conditions mean the private rental sector remains a vital element of the housing mix.

“The growth in lending to property investors is proof of this and the intention of landlords to expand further demonstrates that demand for rental property shows little sign of waning.”