Buy to Let investing in the UK
rose by 22 per cent in 2010 compared to the previous year, new figures from the Council of Mortgage Lenders (CML) have revealed.
This increase in lending meant that the country's buy to let market
expanded by seven per cent over the timeframe, with the total monetary value handed out by banks to investors standing at GBP 10.4 billion.
Added to this, the CML explained that at the end of the year there were an estimated 1.3 million buy to let mortgages outstanding, worth GBP 152 billion and making up roughly about 12 per cent of the total value of mortgages outstanding in the UK.
"Funding remains a key constraint on growth in buy to let lending, but demand seems to be resilient and loan performance has improved," CML director general Michael Coogan said.
"Looking ahead, loan performance could potentially be adversely affected by rising rent arrears or interest rate rises, but at present there is no indication of these pressures materialising in practice."
- Monday 14 February 2011