Impressive figures on buy to let mortgages
Whilst general mortgage figures and statistics have made for gloomy reading over recent months, it seems that the same level of gloom and despair has not hit the buy to let mortgage market according to recent data. In fact, recently released figures show that the level of outstanding buy to let mortgages has rocketed since 2006, passing through the £1 million barrier. He amount outstanding on buy to let mortgages at the end of 2007 was around 23% higher than 2006.
At the end of 2006 the amount outstanding on buy to let mortgages was around £847,000. However, one year later at the end of 2007 this figure had rocketed to £1,038,000. The actual value of the buy to let market has also rocketed, with its value rising to £122 billon by the end of 2007 compared to £95 billion at the end of 2006. With high demand for rental properties from consumers that cannot afford to purchase on the open market landlords are having few problems when it comes to finding suitable tenants.
A Council of Mortgage Lenders spokesperson stated: ‘Tenant demand for private rented property remains strong, and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high quality homes to rent. Buy-to-let has remained resilient in the face of the funding constraints that have affected the sector and the wider mortgage market. We expect to see a continuing healthy appetite for buy-to-let finance this year, in line with continuing expected consumer demand for private rental property.’
Many non-homeowners are now unable to get onto council or housing association lists because many are closed, and with house prices still unaffordable for many there is little option for many people other than to rent on the private market, which is creating the high level of demand that buy to let landlords are enjoying.
Recent additions:
- Trial shows HIPs not as successful as hoped
- Advice given to potential home purchasers
- Many first time buyers facing soaring mortgage rates
- Darling addresses long term fixed rate mortgages in budget
- No change in interest rates for March
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