CML: Buy-to-let market thriving

The Council of Mortgage Lenders (CML) has said that the buy-to-let market continues to thrive in spite of the wider property downturn.

New figures released by the industry body show that the number of buy-to-let mortgages taken out in 2007 rose 23 per cent year-on-year, accounting for one out of every ten home loans.

The CML said that the market appears to have benefited from sluggish activity in the broader property market, with many prospective homeowners delaying plans to buy their own homes until the current period of uncertainty comes to an end.

"Tenant demand for private rented property remains strong and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high-quality homes to rent," was the upbeat assessment given by CML director general Michael Coogan.

He added that many buy-to-let investors endured a spike in mortgage rates as a consequence of the credit crunch, but said rates now appear to be returning to their normal levels.

In spite of the rosy outlook, however, MoneyFacts.co.uk recently reported that the number of buy-to-let mortgage deals on offer has fallen by over a quarter since last July.

News posted on 27th February, 2008