Landlords adding to buy-to-let portfolios, says CML

Landlord Expert
By Landlord Expert June 4, 2014 12:10

The expansion of Britain's rented sector means that a sixth of the population - around 10 million people - now live in accommodation rented from private landlords.

With properties in short supply and both rents and prices rising, more people are now acquiring properties across the country, supported by record-low mortgage borrowing rates, as buy-to-let consolidates itself as the investment of choice, partly due to the dismal returns savers are currently receiving from banks and building societies.

The expansion of Britain's rented sector means that a sixth of the population - around 10 million people - now live in accommodation rented from private landlords. This proportion has roughly doubled since 2000, with further increases anticipated.

It is therefore unsurprising to see March's newly released mortgage lending figures from the Council of Mortgage Lenders (CML) showing that the volume of buy-to-let loans rose by 56% on March last year at 16,200 and 69% up in terms of value at £2.2bn.

The data revealed that for every £5 lent to a homebuyer or mover, £1 was lent to a property investor.

"These figures highlight the continuing strength of the buy-to-let sector," said George Spencer of lettings agency Rentify. "With a lack of new housing stock entering the market and many investors seeing property as a better bet than the traditional investment alternatives, the sector looks in good health."

The CML's March figures, published late last week, revealed a continuing recovery in lending across the whole housing market.

Landlord Expert
By Landlord Expert June 4, 2014 12:10

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