Buy to let market soars
Posted: 21 Mar 2006 11:51:42 GMT
Buy to let properties are soaring in popularity, new figures from the Council of Mortgage lenders have shown, as investors attempt to take advantage of rising rental demand.
In the second half of 2005 money lent to buy to let investors rose by 39 per cent, exceeding previous lending levels by 47 per cent.
In total £14.6 billion was lent in 130,400 loans, reflecting both a strong housing market and the growing popularity of the rental market.
"There was a notable pick-up in the buy to let sector in the second half of last year, so that lending in 2005 modestly exceeded the year before," commented Michael Coogan, director of the CML.
"Despite slowing house prices last year, residential property remains a popular investment, and this is set to continue in 2006."
Relaxed criteria for lending are thought to have encouraged property investment, with lenders now able to provide 85 rather than 80 per cent of a property's price.