Buy-to-let market healthy
- 27th February 2008
- Buy-To-Let Property News
Over 1m buy-to-let mortgages were taken out last year according to the Council of Mortgage Lenders.
The 1,038,000 buy-to-let loans accounted for a 23% rise on 2006, and accounted for 10.3% of all outstanding mortgages.
In recent years there has been a perception that lending to landlords is a risky business however the number of buy-to-let loans that were more than three months in arrears was 0.73%. This is still a lower arrears figure than the 1.1% seen among typical mortgage borrowers. The repossession rate was also lower, just 0.1% compared with 0.23% for the whole market.
The average buy-to-let investor is in his/her early forties, with between three and five properties and expects to keep them for the long term, possibly up to 17 years. The average buy-to-let mortgage was £130,000 per investor.
The number of people renting has increased dramatically in the last few years, fuelling the need for rental property. Commenting on this, Michael Coogan, CML’s director general, says: “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.”
Tenant demand for private rented property remains strong and buy-to-let is fulfilling an important role.
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