According to the latest data from the Council of Mortgage Lenders the buy to let market grew by 7% in 2010. An estimated 1.3 million buy to let mortgages were outstanding at the end of the year, reportedly worth £152 billion and accounting for 12% of the total value of mortgages outstanding. Buy to let lending figures for 2010 was £10.4 billion, 22% higher than in 2009. The buy to let sector has also seen further improvement in the number of mortgages in arrears.
CML report that they are expecting a strong rental demand to remain for the buy to let sector in 2011, driven by the continued struggles faced by first time buyers to gain a foothold on the property ladder.
Commenting on the latest results and the outlook for the buy-to-let market, CML Director General Michael Coogan commented:
"Funding remains a key constraint on growth in buy-to-let lending, but demand seems to be resilient and loan performance has improved. Looking ahead, loan performance could potentially be adversely affected by rising rent arrears or interest rate rises, but at present there is no indication of these pressures materialising in practice. There is also a strong counterbalancing growth influence on the buy-to-let market, as tenant demand seems set to remain high in the face of continuing deposit constraints to entering the owner-occupier market."
What do you think — is now a good time to be purchasing a property on a buy to let basis?
Today’s Conveyancer, bringing you the latest conveyancing news and updates.