Buy-to-let lending showing signs of recovery

But-to-let lending rose by 12 per cent in the third quarter, supported by a high demand for rental property, according to data published by the Council of Mortgage Lenders CML.

Improved mortgage rates and the return to the market of lenders looking to target the buy-to-let market has led to a greater variety of buy-to-let mortgages being taken out.

The figures showed that 26,900 buy-to-let loans were advanced in the third quarter, worth £2.8 billion, an eight per cent rise by volume and 12 per cent by value.

Commenting on the figures, CML director general Michael Coogan, said: "We would expect buy-to-let demand to pick up further if current rising rental trends continue and house prices remain broadly stable."

He added that there is currently some uncertainty in the market as a result of the unresolved debate on housing benefit and landlords' response to new limits.

The recent Financial Adviser Confidence Tracker report revealed that 43 per cent of brokers stated that the availability of the best but-to-let mortgage rates improved in the three months to the end of September.
 

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2010-11-12 14:13:08 © Moneyextra.com