Buy-to-let market 'is stable'

Posted: 13 May 2011 12:05:57 GMT

The buy-to-let market experienced a stable first quarter, it has been found.

A stable first quarter in 2011 has been enjoyed by the buy-to-let market, new findings have shown.

The latest data from the Council of Mortgage Lenders (CML) revealed new buy-to-let mortgage lending totalled £2.9 billion across 27,600 loans in the first three months of the year.

It was found that buy-to-let lending dipped by 3.5 per cent in this period when compared with quarter four of 2010, but it was markedly up from the £2.1 billion seen during the same time-frame 12 months earlier.

Michael Coogan, CML director-general, said that buy-to-let is progressing positively in the context of a stable - yet low-volume - market.

"Demand for rental property remains strong and as more funding becomes available we would expect to see buy-to-let lending increasing," he added.

Ed Stansfield, property economist at Capital Economics, recently noted homeowners need to be aware that mortgage rates are likely to increase in the future.
 

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