Figures released by The Council of Mortgage Lenders show that, for 2006, the Growth in lending to the buy-to-let market exceeded that to the residential housing market generally. 330,000 buy-to-let mortgages, representing a total of £38.4 billion, were taken out in 2006. Compared with 2005, these figures show an increase of 48% in the number of buy-to-let mortgages and an increase in total value of 57% which represents 11% of all new lending.
Despite the increase in this lending, the proportion of buy-to-let mortgages which are in arrears by 3 months or more has fallen during 2006 from 0.64% in the middle of the year to 0.59% at the end of 2006. This compares with the higher figure of 0.89% for the wider mortgage market.
Indications of rising rents, high tenant demand and reducing periods of property being unoccupied point towards the likely continuing popularity of buy-to-let.
