The buy-to-let market remains buoyant but cautious, according to the latest survey of trends among the Association of Residential Letting Agents' (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 'bubbles' and 'bursting', and bodes well for the health of the private rented sector.”