Investors are largely responsible for the current health of the buy-to-let lending market, according to property investment firm Assetz.
Stuart Law, Assetz chief executive, says lower arrears and repossessions reported by buy-to-let investors compared with the wider mortgage market show they “pose lenders a far lower risk”.
Buy-to-let lending remained resilient in 2007 with loans totaling £24.1bn in the second half of the year, up from £21.2bn in the first half and £20.8bn in the second half of 2006, the Council of Mortgage Lenders (CML) reported yesterday.
Law says: “I strongly support the CML’s latest survey data, which highlights the continued resilience of the buy-to-let market.
“The supply/demand imbalance is not going to go away and with a number of vulnerable buyers now holding off in the current market, demand for rented accommodation is strong, fuelling robust rental yields.
“The latest findings reinforce the strength of buy-to-let investors in the market place. With lower arrears and lower repossessions reported for buy-to-let investors when compared with the wider mortgage market, it is clear that investors pose lenders a far lower risk.
“We are continuing to witness substantial demand from buy-to-let investors for the right schemes, in the right places and those investors taking a medium to long-term view can be confident of strong returns.”
According to the CML, the number of loans (including remortgages) to buy-to-let landlords in the second half of 2007 was 179,100, up from 171,800 in the first half of the year and 177,200 in the second half of 2006.
This means the total number of outstanding buy-to-let mortgages has now passed the million mark, standing at 1,038,000 at the end of 2007 - nearly 23% up on the 846,900 a year earlier.
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