Buy-to-let 'boosted by high demand for rental'

Posted: 10 Feb 2011 13:55:29 GMT

Problems in the owner-occupier sector are sustaining rental demand and buy-to-let-growth.

The buy-to-let market is being influenced by the deposits required in the owner-occupier sector, in the opinion of one industry commentator.

According to figures recorded by the Council of Mortgage Lenders, the letting market enjoyed seven per cent growth in 2010.

Michael Coogan, director general of the organisation, put this down to resilient demand and loan performance.

While he noted rent arrears and interest rises could also have a negative impact on the market, the expert confirmed activity is healthy for the time being.

"There is also a strong counterbalancing growth influence on the buy-to-let market, as tenant demand seems set to remain high," Mr Coogan added.

Altogether, the value of buy-to-let lending - £10.4 billion – was 22 per cent higher in 2010 than it was the previous year.

Last month, John Heron, managing director of Paragon Mortgages, observed that the market is entering a buoyant phase and nearly half of brokers expect business levels to increase as the year progresses.
 

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