Buy-to-let 'beginning to boom'

Property signsThe buy-to-let market has continued its recovery to reach its busiest levels since 2008 as landlords expand their property empires due to strong tenant demand.

The number of buy-to-let loans increased by 16% over the three months to the end of September, while the value of mortgages advanced in the sector went up by 19%, said the Council for Mortgage Lenders (CML).
But while the pick-up previously seen in the second quarter of this year has continued, the latest figures remain roughly around a third of the peak levels seen before the financial crisis.

There were 34,500 buy-to-let loans in the three months to September totalling £3.8 billion, an increase from 29,700 loans in the previous quarter amounting to £3.2 billion.

The CML said: "On both measures, buy-to-let lending was at its highest level since the final quarter of 2008."

The last three months of 2008 saw 38,000 loans advanced, amounting to £4 billion.

CML director general Paul Smee said: "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.

"The recovery of buy-to-let from its low point in 2009 has helped improve supply and choice in the rental market.

"Despite recent improvements, however, buy-to-let lending volumes are still only around one-third of their former peaks."

Buy-to-let loans reached a peak of 93,100 in the third quarter of 2007 amounting to £12.4 billion, before falling back to hover between 21,000 and 24,000 loans in 2009.
© 2011 Press Association
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