Buy to Let Market Improves in 2010 – CML

On Thursday, February 10th, the Council of Mortgage Lenders published a report, which showed that British market of buy to let lending increased by 7% in 2010.

At the end of the year, an average of 1.3 million buy to let mortgages were outstanding, which represents 12% of all mortgages in the UK. They were worth 152 billion.

As for mortgage arrears in the buy to let sector, it also improved. The key driver for this is low interest rates that allow for lower payments.

Experts at the Council of Mortgage Lenders expect strong demand for rental property to remain; this, in its turn will make landlords apply for more buy to let mortgages.

Commenting on the latest findings, Mr. Coogan of the Council of Mortgage Lenders, said that "there is ... a strong counterbalancing growth influence on the buy-to-let market, as tenant demand seems set to remain high in the face of continuing deposit constraints to entering the owner-occupier market."

The press-release for the buy to let lending in Q1 of 2011 is expected to be published in early May 2011.

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