It’s hardly a secret that the buy-to-let market has grown over the past 12 months. We’ve seen commentators up and down the land wax lyrical about the opportunities on offer, with some justification.
Now we have additional data that puts even more meat on the bones. Recent figures from the Council of Mortgage Lenders show gross buy-to-let mortgage lending increased 29% by volume and 40% by value in Q2 2011 when compared with the same period last year.
It states that there were 32,000 buy-to-let loans worth £3.5bn advanced in Q2, the highest number and value since Q4 2008 a rise of 16% by volume and 21% by value on the previous quarter.
It’s interesting that these figures came out a day after more positive data from the CML showing that June saw a 10-month high in the number of mortgages taken out by first-time buyers.
This suppresses any outcry about landlords snapping up properties from the clutches of first-timers.
The CML also revealed that the increase in buy-to-let figures was primarily driven by remortgaging, accounting for 65% of the overall quarterly rise in lending.
Such data will continue to be viewed keenly by lenders and landlords. Buy-to-let arguably remains the must-watch specialist sector for brokers.
Let’s hope this competition continues to flourish and delivers the attractive deals that allow landlords to increase portfolios and remortgage existing ones.