27 Aug

Buy-to-let 'outperforming residential mortgage market'

Buy-to-let 'outperforming residential mortgage market'

The buy-to-let mortgage market is outperforming the residential mortgage market in many aspects, the Council of Mortgage Lenders (CML) has stated.

New research by the CML has shown that the level of mortgages in arrears is lower (1.1 per cent against 1.33 per cent), while the decline in the number of new loans taken out in the first half of this year compared with the opening six months of 2007 is ten per cent less than the wider market.

It also showed that the average loan-to-value has only fallen slightly, down from 85 per cent to 83 per cent.

Commenting on the situation, CML director general Michael Coogan stated: "We expect the rental market to remain underpinned by strong demand, partly because some people who would like to buy a home are being forced to carry on renting for now."

Earlier this month the Royal Institution of Chartered Surveyors revealed that in its latest survey a record low number of 2.1 per cent of landlords are planning to sell up when current tenancies expire.

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