Buy-to-let

Lending on the increase by almost 50 per cent on last year

During 2006, banks, building societies and other lenders handed out 330,000 buy-to-let loans worth a total of £38.4bn.

The Council of Mortgage Lenders (CML) said the figure represented a 48 per cent increase in volume and a 57 per cent increase in value over 2005 levels.
In all, the number of buy-to-let mortgages outstanding now stands at around 850,000, worth a total of £94.8bn.

Since the end of 2005, when the corresponding figures stood at 702,000 and £73.4bn, the number of buy-to-let mortgages has risen by 21 per cent and their value by 29 per cent.

Buy-to-let lending now represents 9 per cent of the value of all mortgage balances, up from 8 per cent in 2005.

The CML, said: "The buy-to-let market has performed even more strongly than the wider market over the course of 2006. With evidence from other sources of strong tenant demand, rising rents and falling void periods, buy-to-let looks set to continue to remain popular and successful."

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