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Posted by Let Alliance on May 16, 2012
The number of landlords taking out buy to let mortgages has increased in 2012, according to recently released data from the Council of Mortgage Lenders (CML).
The increase in buy to let mortgage lending is very good news for tenants as there are more rental properties to meet the demand. The CML research has shown that although buy to let lending was down by 5% in the first three months of this year, it was actually up by 32% compared to the same period in 2011.
32,300 mortgage loans, totalling £3.7 billion, were taken out in the first quarter of 2012.
Buy to Let mortgages also made up 12.6% of the value of outstanding mortgages at the end of the first quarter, up by 0.4% in a year on year comparison. In total there are currently 1.4 million Buy to Let mortgages with a total value of £159.4 billion.
“Even though buy to let lending is running at only around a third of its peak levels, the sector is continuing its gradual expansion,” said Paul Smee CML director general.
“It has become an important part of the overall landscape of housing provision in the UK,” he added.
Source: Council of Mortgage Lenders (CML).