The buy-to-let property market is still thriving according to the Council of Mortgage Lenders (CML).
The number of buy-to-let loans rose by 23% last year, taking their number to 1,038.000 and accounting for 10.3% of all outstanding mortgages. This lending picked up in the second half of the year at a time when general mortgages lending was falling.
Michael Coogan, the CML’s Director General, said, “Tenant demand for private rented property remains strong and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high quality homes to rent. Demand from landlords had been resilient despite problems at some lenders like Northern Rock. Many buy-to-let loans have interest rates linked to interbank rates and so many have seen hefty increases in payments when Libor rose to abnormally high levels in the second half of 2007. These are now likely to be returning to lower levels in line with the reduction in Libor rates since December last year.”
Tim Hague of the buy-to-let mortgage lender Birmingham Midshires said, “With demand continuing to be in demand due to socio-economic factors such as rising immigration, many experts are predicting that this market will continue to be buoyant in the next few months of 2008.“
Editor: Simon Weston myfirsthomeltd.co.uk
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