2011 sees 84,000 New Properties join the Buy to Let Market

18 February 2012 Categories: News

2011 sees 84,000 New Properties join the Buy to Let Market

According to the annual figures released by the Council of Mortgage Lenders, 2011 saw over 84,000 new properties join the currently overstretched buy to let market…that is 84,000 properties were purchased with the backing of a buy to let mortgage. The 4th quarter of the year was the most promising with nearly 35,000 buy to let mortgages (of which 16,000 were remortgages) being approved; the total value of which was around £4 billion.

When these figures are compared with those of the 4th quarter of 2010 (26,600 mortgage loans with a value of £2.9 billion) it shows that the buy to let market remains an attractive proposition for property investors. Adversely though, when the overall figures for 2011 are compared with those of 2007 (93,000 mortgage loans worth over £12.5 billion) when the market was at its peak it becomes obvious there is still some way to go before it regains its previous strength.

When asked for his opinions on the latest figures, director general of the CML, Mr Paul Smee, said “Buy-to-let lending continues to perform well. Demand for rented property remains high, so the rationale for buy-to-let remains strong, and there is little reason to foresee any change to this positive outlook for the sector”.