Buy to let properties up by 84,000 in 2011, says CML
Thursday, 09 February 2012 10:36
The number of properties bought with buy to let mortgages increased by around 84,000 last year, helping to boost the supply of private rented housing, according to Council of Mortgage Lenders data.
During the fourth quarter of 2011, a total of 34,800 buy to let mortgages, of which 15,600 were remortgages, were advanced, with a total value of £4 billion, the figures show.
This was significantly higher than the same time the previous year, when 26,300 loans worth £2.9 billion were advanced.
Compared with the market peak in 2007, when quarterly lending totalled 93,000 loans worth £12.7 billion, the buy to let sector is still subdued, but clearly continuing to recover from its low point in 2009, the CML said.
Jonathan Samuels, chief executive of Dragonfly Property Finance, said the latest figures confirm that the sector on its way back.
“Landlords are making hay while the sun shines, adding to their portfolios in order to increase their exposure,” he said.
“The fact that property prices are low is contributing to this trend.”
But Matt Hutchinson, director of UK flat and house share website SpareRoom.co.uk, said that although buy to let numbers were up in 2011, demand for rented homes is still outstripping supply.
“With renters staying in properties for longer, there is a lack of old stock coming back on to the market,” he said.
However, he added that sensible pricing by landlords could prevent UK rents spiralling out of control as demand continues to grow.
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