14:40 PM, 26th November 2010, About 12 years ago
Buy to let lending has risen by 12% supported by ongoing demand for rental property fuelled by potential homeowners who have to rent because they cannot buy.
There were 26,900 buy to let loans worth £2.8 billion advanced in the three months ending September 30, according to the latest figures from the Council of Mortgage Lenders (CML).
This quarterly rise of 8% by volume and 12% by value is the second consecutive quarterly increase in lending.
Compared to the third quarter of 2009, the volume of lending was up 14% and the value up 33%, from 23,700 and £2.1 billion. Buy to let lending is low by historical standards – running at levels last seen in 2002 – and the market will likely continue to show growth into 2011.
At the end of September, there were 1.29 million buy to let mortgages, an increase of 7% from the previous quarter.
The proportion of loans in arrears of more than 1.5% of the balance remains broadly unchanged at 1.45%, while repossessions (at 0.12%) and the appointment of receivers of rent (at 0.10%) were also virtually unchanged from the previous quarter.
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. However, there is short-term uncertainty as a result of the unresolved debate on housing benefit and landlords’ response to new limits.
“The bigger question is whether there will be sufficient supply side capacity to meet that demand, as the number of buy to let lenders dwindled in the credit crunch after 2007 and is yet to be fully restored.
“However, it is clear that in a market where access to home-ownership has become more difficult, the private rental sector is experiencing, and will continue to benefit from, high levels of demand for good quality housing.”
CML members are banks, building societies and other lenders who lend around 94% of all residential mortgages in the UK.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Previous ArticleHMO investors must not shun planning opportunity
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|