The value of buy-to-let borrowing rose by 12 per cent in the UK over the third quarter of 2010, as investors looked to capitalise on the rising demand from renters who are unable to buy, according to my finances.
New figures out from the Council of Mortgage Lenders (CML) reportedly show 26,900 loans being advanced to landlords between July and September, worth a total of £2.8 billion. And while these are low by recent historical standards – being roughly in line with the level of borrowing seen back in 2002 – the growth trend is expected to continue into 2011, according to the publication.
The director-general of CML, Michael Coogan, attributed the rise in buy-to-let borrowing to the “dysfunctional” housing market in the UK.
“It is clear that in a market where access to home ownership has become more difficult, the private rental sector is experiencing – and will continue to benefit from – high levels of demand for good quality housing,” he is reported as saying.
However, other figures in the industry were more positive about the figures, saying they demonstrated increased confidence among landlords as well as lenders, according to the report.