Buy to let lending increases 19% in 2012
Gross buy to let lending increased 19 per cent year-on-year and is now at its highest level for four years, according to figures from the Council of Mortgage Lenders (CML).
A total of 136,900 buy to let loans were advanced in 2012. In the final three months of the year, 36,700 buy to let loans totalling £4.6 billion were advanced – up from 34,300 loans worth £4.2bn in Q3 2012 and 34,200 loans valued at £3.9bn for the final quarter in 2011.
Buy to let lending accounted for 11.5% of overall gross mortgage lending in 2012.
Paul Smee, Director General at the CML, is confident this growth will continue throughout 2013:
“Buy to let is benefitting from strong tenant demand, which is likely to continue. Loan performance compares favourably with the owner-occupier sector, and the overall outlook for the buy to let sector is positive.
“Landlords who can demonstrate a strong track record are in a good position to expand their portfolios. However new potential landlords need to tread carefully before entering the buy to let market,” he warns. “Considerations such as landlord licensing reinforce the need for potential landlords to gain a strong understanding of the legal and operating environment.”
Goldsmith Williams Solicitors is a valuable resource for any newbie landlord. Not only can we handle your buy to let purchase, GW LET – our dedicated landlord legal service - can help support you throughout your life as a landlord. We can provide legal expertise in a range of issues from drafting tenancy agreements to removing tenants in rent arrears as well as advising on tenancy deposit protection and disputes.
Content correct at time of publication