Buy To Let Mortgage Market Set To Grow By 10%
The buy-to-let mortgage market was given a timely tonic last week as it was revealed that gross lending in the sector grew by 10% in Q3, according to the Council of Mortgage Lenders (CML)…
The increase was the first time the buy-to-let market has grown in two years and means that lending for Q3 stood at £2.1bn, accounting for 11% of all mortgages. Outstanding buy-to-let loans grew to 1,250,000 and the value rose 2.5% to £144.2bn.
Further good news for the sector came in the shape of LSL Property Service’s October findings, which revealed that annual property investment returns turned positive for the first time since the UK sank into recession. After taking rental income and the slight fall in house prices into account, a landlord investing in property a year ago would have made a 2.4% return.
The positive news comes amid concerns the health of the buy-to-let market could be adversely affected by regulatory scrutiny, as hinted at in the FSA’s Mortgage Market Review.
David Brown, commercial director of LSL Property Services, said: “October was a watershed month for property investors. The spectre of losses on their investments is finally being exorcised and they can look forward to property again providing them with a decent return.”
