Buy-to-let market swells by 84,000 in 2011

The buy-to-let market swelled by 84,000 in 2011, as more individuals sought to invest their private wealth in real estate.

According to figures from the Council of Mortgage Lenders, the increase helped boost the supply of private rented housing in the UK.

Its data suggests that 34,800 buy-to-let mortgages were advanced in the fourth quarter of the year, at a total value of £4 billion.

However, the CML said there is still some way to go before buy-to-let lending reaches pre-recessionary levels, with the fourth quarter of 2007 witnessing over 93,000 loans worth £12.7 billion.

CML director general Paul Smee said: "Buy-to-let lending continues to perform well.

"Demand for rented property remains high, so the rationale for buy-to-let remains strong, and there is little reason to foresee any change to this positive outlook for the sector."

In total, buy-to-let mortgages accounted for 13 per cent of the total outstanding value of mortgages at the end of 2011 and 11 per cent of gross lending during the fourth quarter in particular.

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