Buy-to-let lending worth over £5 billion

Buy-to-let lending worth over £5 billion

In the second quarter of 2013 lenders advanced 40,000 mortgages to buy-to-let investors, worth £5.1 billion.

According to data published by the Council for Mortgage Lenders (CML), both the number of buy-to-let loans and the value of lending were the highest since the third quarter of 2008.

Year-on-year, buy-to-let lending was 19% higher by volume and 31% higher by value (33,600 loans in the second quarter of 2012, worth £3.9 billion).

CML, head of policy, Jackie Bennett, said: "Strong rental demand is contributing to the continuing expansion of the buy-to-let sector, but growth is also being helped by improved conditions in funding markets and more widespread availability of mortgages.”

Stuart Law, CEO of Assetz, said: “We are seeing more people approaching pensionable age investing in order to bolster their retirement income at a time when the Bank of England indicates base rates, and therefore savings rates, will stay low for at least three more years.

“While the growth of the sector in London is clear to see, the house price ripple effect is only just beginning now in the North where there are excellent opportunities for investment – particularly in key cities like Manchester, Liverpool, Birmingham and their suburbs.

“Many Southern investors are broadly unaware of the lucrative yields available in northern market, at prices that represent the beginning of the next cycle.”

General News

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