12/11/2010 - Buy-to-let market continues revival
The buy-to-let market continued its revival into the third quarter amid strong rental demand, latest figures have revealed.
A total of £2.8 billion was advanced to investment landlords in the three months to the end of September. This was a 33% improvement on the same period last year and the highest level since the final quarter of 2008, the Council of Mortgage Lenders (CML) said.
The buy-to-let market has been gradually recovering from the impact of the credit crunch after lending levels hit a low of £1.9 billion in the second quarter of 2009. But lending levels remain a long way off the peaks reached during the third quarters of both 2006 and 2007 when a record £12.4 billion was advanced to buy-to-let investors.
The CML said the rise in lending during the third quarter, which was 12% up on the previous three months, was driven by ongoing strong demand for rental property as many first-time buyers struggled to get the mortgages they needed to buy their own home. Michael Coogan, director general of the CML, said: "We would expect buy-to-let demand to pick up further if current rising rental trends continue and house prices remain broadly stable."
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