Buy to let goes from strength to strength
Posted: 16 Aug 2006 11:07:53 GMT
Buy-to-let mortgages have set new records in application volumes for the second half-year running, according to new research by the Council of Mortgage Lenders (CML).
An increase of 17 per cent in the volume of applications and a 20 per cent rise in the value of the loans has beaten the previous record set in the second-half of 2005.
There are currently 767,000 outstanding residential buy-to-let mortgages in the UK worth a total of £83.9 billion.
Michael Coogan, director general of CML, stated: "The buy-to-let market remains robust, underpinned by strong rental demand.
"But investors have shown that they are quick to adjust to changing market conditions, so the view that interest rates are now more firmly on an upward trend is likely to cause the rapid growth of buy-to-let investment to slow in the coming months."
The residential investment market now accounts for eight per cent of the value of outstanding UK lending, up one per cent from the first half of 2005.
"Fundamentally, the rental market remains sound and looks set to continue to offer good long-term prospects for astute investors," Mr Coogan added.