Investors continue to pile into the buy-to-let market with figures from the Council of Mortgage Lenders (CML) revealing that £4.2 billion was lent in buy-to-let mortgages during July to September, an 8 per cent increase from the previous three months.
During the third quarter of 2012, a total of 34,400 buy-to-let mortgages were taken out. Total lending in the sector for the year to date has now reached £11.8 billion, 19 per cent higher than the same period last year.
Though lending has increased this year, the CML points out that it has come from a low base and the market is still subdued compared with the activity seen prior to the credit crunch. It says lending this year is still only likely to total around a third of the amount seen during the market’s peak in 2007.
Commenting on the data, CML director general Paul Smee said:”Buy-to-let lending is continuing to recover, and to grow in line with expectations. As well as continuing to fund owner-occupation, lenders are contributing to the expansion of a strongly growing rental sector, helping to deliver choice and mobility for tenants. The growth of private renting looks set to continue in the years ahead, and lenders are committed to playing a full part in the debate about how best to meet the evolving needs of tenants in the future.”
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