B2L lending up for the first time since 2007
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Gross buy-to-let lending grew in Q3 for the first time in two years, shows data from the Council of Mortgage Lenders.
Gross buy-to-let lending reached £2.1bn in Q3, up 10% from the previous three months.
The CML found that the number of buy-to-let loans has also risen from 21,600 in Q2 to 23,700 in Q3, though the trade body notes that the modest recovery is from a low base.
Buy-to-let loans now represent 11% of all mortgages, with 1,205,000 outstanding buy-to-let loans worth £144.2bn.
Purchase lending within the buy-to-let sector was much more dominant than remortgaging, echoing the trend seen in the mainstream mortgage market.
The ability to remortgage buy-to-let deals has been hit by the lack of buy-to-let mortgages at over 80% LTV.
The number of buy-to-let mortgages in arrears fell to 20,500 in Q3, compared with 22,900 for the previous three months.
Meanwhile the number of repossessions rose in the three months to the end of September to 1,600, up from 1,400 buy-to-let repossessions as at the end of June. , rose in the third quarter, from 1,400 to 1,600, equivalent to 0.14% of all buy-to-let mortgages.
Michael Coogan, director-general of the CML, says: “At this stage, the recovery is modest - but the figures show that buy-to-let is here to stay.
“Buy-to-let lenders are among those facing some of the biggest challenges in raising mortgage funding, so the improved figures are all the more welcome.”
He adds: “Future demand for housing in all tenures supported by lenders will remain strong, despite mortgage funding constraints and low construction rates.
“With funding for social housing under pressure, the private rented sector has a strong future.
“Mortgage lenders will have an important role to play in it, and will continue to help improve choice and standards for private tenants.”
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