Buy-to-let market going strong

The buy-to-let property market is still performing well, according to the Council of Mortgage Lenders (CML).

Buy-to-let loans increased by 23 per cent last year to 1,038,000 and represented 10.3 per cent of all mortgages, according to the CML figures.

Michael Coogan, the CML director general, said: "Tenant demand for private rented property remains strong, and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high-quality homes to rent."

He added that these are now likely to return to lower levels "with the reduction in Libor rates since December last year".

According to the research, the buy-to-let sector now accounts for one in every five mortgages which are taken out in order to buy a new property.

The Council of Mortgage Lenders represents the mortgage lending industry. It aims to help create a favourable operating environment in the UK mortgage market. It includes banks, building societies and other mortgage lenders among its members.

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