B2L lending down 5% in Q1 2012
The latest data from the Council of Mortgage Lenders (CML) has shown a 5 per cent dip in buy-to-let lending in Q1 2012.
32,300 loans (£3.7bn) were completed during January, February and March this year compared to 34,000 loans (£3.9bn) in the final three months of 2011.
Yet despite this quarterly dip, buy to let lending was up 32 per cent year-on-year with just 24,900 (£2.8bn) completed in Q1 2011, demonstrating the growing appetite in this market.
Buy to let now represents an estimated 12.8 per cent of the total value of outstanding mortgages. However whilst the annual increase is encouraging, the CML is quick to highlight the gap between now and 2007; current lending is just a third of 2007 activity.
Nevertheless Paul Smee, Director General at the CML, remains upbeat:
“Even though buy to let lending is running at only around a third of its peak levels, the sector is continuing it gradual expansion. It has become an important part of the overall landscape of housing provision in the UK.”
Content correct at time of publication