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Buy-to-let property sales soaring

2011 was a bumper year for buy-to-let property sales, with the number of properties being bought with buy-to-let mortgages increasing by roughly 90,000, as the supply of private rented housing in the UK continues to boom.

According to data from the Council of Mortgage Lenders, during the fourth quarter of 2011, a total of 34,800 buy-to-let mortgages were advanced, worth approximately £4 billion.

However, while the numbers are impressive, they’re still dwarfed by those seen in 2007, when at the height of the market, quarterly lending totalled £12.7 billion in the third quarter.

Despite the buy-to-let market operating at comparatively subdued levels to 2007, these new figures show shoots of recovery from the post-recession low point of 2009, and in total, buy-to-let mortgages now account for nearly 13% of the total outstanding value of mortgages in the UK.

“Buy-to-let lending continues to perform well. Demand for rented property remains high, so the rationale for buy-to-let remains strong, and there is little reason to foresee any change to this positive outlook for the sector,” said CML director general Paul Smee.

"These figures do not suggest that buy-to-let is crowding out first-time buyers; more that it is performing a really important role within the overall housing market. The benefits of the availability of good quality, private rented housing should not be overlooked, especially as there are many households which need the flexibility and mobility that the private rented sector is well placed to provide."

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