CML: Buy-to-let market sets new records

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CML: Buy-to-let market sets new records

Wed 16th Aug 2006

Buy-to-let borrowing has set new records in the first half of the year, with lender s advancing £152,500 loans worth £17.5 billion, according to the Council of Mortgage Lenders (CML).

Figures show that there are now 767,000 outstanding residential buy-to-let mortgages in the UK, which are worth a combined total of around £83.9 billion.

This growth in buy-to-let borrowing contrasting with a slower increase in lending in the wider market means that the residential investment mortgage market now accounts for eight per cent of the value of outstanding UK lending.

However, the research found that the proportion of buy-to-let mortgages in arrears of three months or more rose slightly from 0.68 per cent of the stock to 0.73 per cent in the first half of 2006.

"The buy-to-let market remains robust, underpinned by strong rental demand," CML director general Michael Coogan said.

"But investors have shown that they are quick to adjust to changing market conditions, so the view that interest rates are now more firmly on an upward trend is likely to cause the rapid growth of buy-to-let investment to slow in the coming months."

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