B2L market bouyant, but cautious

The buy-to-let market remains buoyant but cautious, according to the latest survey of trends among the Association of Residential Letting Agents&#39 (ARLA) panel of mortgage lenders.

The average monthly total of actual loans for buy-to-let investment rose by 30% compared to the previous six months. However, an average loan figure of £82,141 was only 2.4% more than the previous average of £80,100.

Prime central London continues to have by far the largest loan size of any area of the country at £198,800 – nearly four times the average figure of £53,900 for northwest England and North Wales, and well over twice the size of the average loan for the country as a whole.

However, the average loan amount for property in prime central London has decreased by 2% while the rest of London has remained unchanged. Loan amounts increased in all the other regions from between 5.8% in the South East and 14.4% in the South West.

John Crossley, chairman of ARLA, says: “When you consider soaring house prices, this demonstrates a buoyant market for investors taking a properly cautious attitude. It kills the twin myths of &#39bubbles&#39 and &#39bursting&#39, and bodes well for the health of the private rented sector.”