Although recent reports have indicated that mortgage lending has been losing momentum over recent months as a result of the global credit crunch, another report has shown that buy to let mortgage lending remains healthy, despite problems in the financial markets. By the end of last year buy to let mortgage loans figures had soared, and recent reports show that they have broken through the £1 million barrier.

Compared to the end of 2006 the level of buy to let mortgages has risen by 23%, with outstanding buy to let mortgages standing at £1,038,000 – at the end of 2006 this figure stood at £846,900. The value of the buy to let market at the end of 2006 was £95 billion, but the healthy buy to let mortgage market has seen this figures rise to £122 billion. These rising figures come despite the bleak outlook that has been predicted for the housing market over the coming year.




Landlords have enjoyed healthy interest from potential tenants, and this is because many consumers are currently unable to make a purchase on the open market due to high property prices and high interest rates. With an increasing number of potential purchasers deciding to wait and see what happens with house prices and interest rates, which have both been predicted to fall, more are now showing an interest in renting a property for the short term.

One industry professional stated: ‘Tenant demand for private rented property remains strong, and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high quality homes to rent. Buy-to-let has remained resilient in the face of the funding constraints that have affected the sector and the wider mortgage market. We expect to see a continuing healthy appetite for buy-to-let finance this year, in line with continuing expected consumer demand for private rental property.’