Buy to let mortgage lending increased in Q2

12 August 2010

Written by Michael Aglony

Buy to let home loan lending was up in the second quarter, according to new figures, while arrears fell.

According to the Council of Mortgage Lenders (CML), the number of products taken out between March and June was 13 per cent higher than in the first three months of the year.

With 24,900 home loans provided in the second quarter, it was also a 15 per cent increase on the figure posted for the same period last year.

Director-general of the body Michael Coogan commented: "The buy to let market has continued to grow, albeit slowly, throughout the period since the credit crunch."

Although finance is still difficult to obtain, the expert believed the private rented sector could still "make a powerful contribution" to the housing market.

Strong tenant demand is set to continue, he added, due to the high cost of buying a home and a lack of social housing.

This comes after David Whittaker, managing director of Mortgages for Business, said he expected lending criteria to ease.

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