10 Feb

Buy-to-let market grew in 2010

Buy-to-let market grew in 2010

Growth of seven per cent expanded the buy-to-let marketing in 2010, resulting in more houses to rent in the UK.

Approximately 1.3 million buy-to-let morgages, worth £152 million, made up 12 per cent of the total value of mortgages outstanding at the end of last year, according to the Council of Mortgage Lenders (CML).

CML figures have revealed that lending to buy-to-let investors came to £10.4 billion for the year, showing an increase of 22 per cent compared to 2009.

In addition, a total of 102,000 home loans for buy-to-let properties were approved, ten per cent more than in the previous year.

The fourth quarter of 2010 saw 28,600 new buy-to-let mortgages secured, an increase of six per cent from the third quarter.

CML director general Michael Coogan said: "Demand seems to be resilient and loan performance has improved.

"Tenant demand seems set to remain high in the face of continuing deposit constraints to entering the owner-occupier market."

People planning to invest in properties for rent in 2011 may find increased mortgage availability.

Research from Paragon Mortgages has revealed that almost half of mortgage brokers plan to boost their buy-to-let products in the coming year.ADNFCR-1222-ID-800397603-ADNFCR

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