Buy-to-let mortgage market will take several years to recover

Posted: 15 Nov 2010 10:15:37 GMT

One expert has suggested it will take a long time for the buy-to-let mortgage sector to return to pre-2007 conditions.

The buy-to-let mortgage market will take a few years to fully recover from the recession.

This is the view of Chris Horne, editor of Property Hawk, who said there is unlikely to be a sharp recovery, despite the fact conditions have eased over the last 12 months.

"It is the unwinding of the big collapse in the banks. Slowly they are rebuilding their capital position and are then gaining the confidence to lend to people like landlords," he remarked.

He claimed it will take "several years" for the sector to return to how it was pre-2007.

The specialist's comments follow the release of a survey by the Council of Mortgage Lenders, which revealed buy-to-let lending increased by 12 per cent during the third quarter of this year.

This is a rise of 14 per cent compared to figures from the same period in 2009, but, the levels are at a historical low and are running at a pace last seen in 2002.
 

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