According the latest data from the Council of Mortgage Lenders, the number of properties being bought with buy-to-let mortgages increased by around 84,000 in 2011.
During the fourth quarter of 2011, a total of 34,800 buy-to-let mortgages were advanced (a total value of £4 bn). This was almost identical to the third quarter figures (34,300 loans worth £4 bn).
Buy-to-let mortgages account for nearly 13% of the total outstanding value of mortgages in the UK in 2011.
CML director general Paul Smee commented, “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.
“These figures do not suggest that buy-to-let is crowding out first-time buyers; more that it is performing a really important role within the overall housing market. The benefits of the availability of good quality, private rented housing should not be overlooked, especially as there are many households which need the flexibility and mobility that the private rented sector is well placed to provide.”