Figures from the Council of Mortgage Lenders showed 40,000 buy-to-let mortgages were issued between April and July, making it the highest number, and value, of loans since the third quarter of 2008.
Mortgage lending in general has been recovering strongly on the back of the Bank of England Funding for Lending scheme that gives lenders access to cheap funds on the condition that they lend this on to individuals and businesses.
The period saw growth in both the volume and value of mortgages from the quarter before, of 19 per cent and 21 per cent respectively, while year-on-year figures showed a similar 19 per cent growth in volume and a much higher 31 per cent growth in value. However, it must be said that the rate was picking up from a relatively low level.
Landlords welcomed the figures, saying that the growth is being fuelled by a renewed appetite from investors, along with better availability of buy-to-let mortgages at lower rates.
In addition, demand from tenants continues to be strong, as many delay getting a foot on the housing ladder themselves. This may be because they wish to retain flexibility in their living arrangements or may be saving for a deposit.
Moreover, the trend should continue after the Bank of England’s announcement this week that interest rates will remain at their historic low of 0.5 per cent for some years to come.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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