Buy-to-let could be back on track after three years

Posted: 20 May 2010 11:31:37 GMT

The buy-to-let industry is thought to be bouncing back as figures show an increase in available mortgages.

Buy-to-let products reached more than 3,600 at their peak in August 2007, but fell to 179 in September 2009, according to Moneyfacts.co.uk.

However, that number is steadily growing and by mid-May had moved to 304.

Darren Cook, spokesman for the site, is enthusiastic about the growth in buy-to-let products and sees the return of building societies and banks as "signs that this market is starting to become a more viable and safer option for lenders".

Saffron Building Society, which recently re-entered the market, offers a buy-to-let two-year tracker mortgage and one fixed at 5.98 per cent until June 30th 2015.

But Mr Cook is worried that a review of the capital gains tax, including a possible reduction to the annual exemption limit from £10,100 to £2,500 could "put the recovery of the sector off track [and] spark a downward price spiral".


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