"Strong fundamentals" driving buy-to-let

Posted: 01 Jun 2007 12:54:07 GMT

The buy-to-let market will remain in good health because of "strong fundamentals" driving the market, the Council of Mortgage Lenders (CML) has said.

The buy-to-let market will remain in good health because of "strong fundamentals" driving the market, the Council of Mortgage Lenders (CML) has said.

Although the potential for a slowdown in the buy-to-let market was admitted, CML spokesman Bernard Clarke said that factors including the ever-growing demand for housing and the affordability problems of first-time buyers would continue to provide landlords with strong incomes.

Recent increases in interest rates have hit buy-to-let mortgage holders, with many landlords being forced to increase the rents they charge in order to meet their mortgage repayments.

"It's a very strong sector," said Mr Clarke.

"Perhaps there could be potentially a slow down in the growth of buy-to-let lending, but we continue to see it as a strong sector driven by very strong fundamentals in terms of shortage of housing supply, immigration and a growth in housing demand and the problem of accessing home ownership."

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