The Council of Mortgage Lenders’ (CML) has announced details on the growth of the buy-to-let market. Over the past quarter, buy-to-let mortgages have created a gross total of £4.2 billion across 33,500 mortgages and CML reports that there are now around 1.46 million buy-to-let mortgages in the U.K.
According to the Council of Mortgage Lenders’, by the end of March buy-to-let mortgages accounted for 13.4 per cent of total outstanding mortgage lending in the U.K.- marking a steady growth from the previous quarter at 13 per cent and 12.9 per cent at the end of the first quarter of 2012.
The report also highlights that buy-to-let mortgages account for 8.3 per cent of mortgages in arrears over the past three months, a significant drop from 10.5 per cent in the first quarter of 2012.
CML director general, Paul Smee, said: “The buy-to-let mortgage market is performing well, against a backdrop of robust landlord – and tenant – demand for good quality rental property. Loan performance compares favourably with the owner-occupier sector, and buy-to-let continues to grow as a proportion of the overall mortgage market.
“As the private rented sector looks likely to be the longer-term tenure in which more households may live in the future, lenders are actively looking at how they can best evolve their future lending for those landlords who may wish to offer longer-term tenancies to their tenants – although concrete landlord demand for such borrowing is not yet clear.”
Doug Hall from RLA mortgages also commented on the growth of the buy-to-let market: “Although the overall economy is challenging at present the buy-to-let market continues to grow from strength to strength. Greater funding options and higher yields are creating good opportunities for new and existing landlords”