Buy-to-let mortgages now account for one in five of all mortgages, according to estate agent Haart.
The latest figures from Haart show that 20.2 per cent of mortgages are buy-to-let, up from 15.3 per cent at the start of the year.
It said that the growth was fuelled by an increased demand for residential properties and annual yields of close to 10 per cent available to landlords for properties in certain parts of the UK.
Meanwhile, two thirds of landlords are now using fixed term deals, as they strive for greater financial security.
Haart financial services managing director Davi Miles said: “Although lending criteria remains tight, there are certainly products available to applicants, and we would expect this sector of the market continue to grow throughout the remainder of 2012 and beyond as it increasingly underpins the UK property sector as a whole.”
