Buy To Let Mortgage Numbers Show Strength Of The Rental Market

17 November 2012 Categories: News

Buy To Let Mortgage Numbers Show Strength Of The Rental Market

According to new figures released by the Council of Mortgage Lenders, buy to let mortgages now account for one in eight mortgages in the UK. The total number of mortgages currently active in the UK stands at 11.3million, and buy to let mortgages total 1.44million of these. This equates to a percentage of 12.7, the highest recorded since records began.

The high proportion of buy to let mortgages not only proves the strength of the private rental market, it also shows that landlords and investors are willing to add to their portfolios regardless of the way the rest of the property market is performing.

The strict lending criteria for property purchases has been blamed for the growth of the private rental sector, with millions of first-time buyers being priced out of the market. Dan McLeod, director at Atkinson McLeod, commented, “The demand from investors for buy to let has never been stronger,” and it seems he’s not wrong.

Director of BDRC Continental, Mark Long, also commented on the high levels of investment currently being seen in the PRS, saying, “Landlords consistently tell us that they see their property portfolio as forming a critical part of their pension provision for the future. On average, landlords intend to remain active in the rental sector for another 15 years or so, and see a combination of capital gains and rental income as underpinning their pension strategy.”