Buy-to-let lending falls 56% towards end of 2008

New lending for buy-to-let continued to decline in Q4 of 2008, show figures from the Council of Mortgage Lenders released today.

There were 37,000 new loans, worth £3.9bn – 12% down on the third quarter, and 56% down compared with the fourth quarter of 2007.

The CML only began collecting quarterly buy to let data in 2006, but says on the basis of previous half-yearly data this is almost certainly the lowest quarterly lending figure since 2003.

Outstanding buy-to-let mortgages represented around 10% of all loans, and around 11% of the value of all lending, at the end of 2008.

Over 2008 as a whole, buy-to-let lending accounted for 10.6% of the value of total gross mortgage advances, down from 12.3% in 2007.