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Buy To Let Loans Experience Third Quarter Boost
Landlords are continuing to snap up property for sale as tenant demand encourages growth in portfolios, new figures show.
According to new statistics from the Council of Mortgage Lenders (CML), new buy-to-let loans were up 16 per cent in the third quarter, while there was also a sharp rise in house purchases.
A 39 per cent increase was also seen in the number of loans compared to the third quarter of 2010, with the number now reaching 34,000.
Buy-to-let lending sat at its highest level since the last quarter of 2008, the CML said.
Nigel Terrington, chief executive of the Paragon Group, said: "The 46 per cent year-on-year increase in the value of gross advances reflects landlords' growing optimism in the buy-to-let market and it is positive to see that they are continuing to increase the size of their portfolios."
He also predicted a trend for landlords to use their own money and short-term financing to purchase and renovate properties, before then remortgaging them.
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Article date: 11/17/2011 12:00:00 AM