The £16.4bn BTL mini-boom

The £16.4bn BTL mini-boom




Establishing itself as one of the fastest growing lending markets, the latest buy-to-let (BTL) figures show that over the past year £16.4 billion was advanced.

Establishing itself as one of the fastest growing lending markets, the latest buy-to-let (BTL) figures show that over the past year £16.4 billion was advanced in these transactions, representing a four-year high.

The statistics released by the Council of Mortgage Lenders show a 19 per cent growth in the market which demonstrates that landlords are now in a position to expand their portfolio as they generate more income from record rents.

BTL mortgages made up 13 per cent of all mortgages at the end of 2012, with 136,900 loans advanced, up from 12 per cent in 2009 and 9.6 per cent in 2006.

Last year saw the highest number of BTL loans advanced since 2008, however, the figure is still far from the 2007 record of 346,000.

Commenting on the figures the CML’s Director General, Paul Smee, said: "The overall outlook for the buy-to-let sector is positive. Landlords who can demonstrate a strong track record are in a good position to expand their portfolios."

Jonathan Harris, Director of mortgage broker Anderson Harris, added that first-time buyers are struggling to get mortgages so are being pushed to continue to rent. He said: "This is pushing up rents, making the sector increasingly attractive to investors.”

The new data follows the CML’s repossession statistics released earlier this year, which evidenced that foreclosures are at their lowest since 2007, despite more homeowners having large mortgage arrears.

Leave a comment