New figures from the Council of Mortgage Lenders (CML) suggest that buy-to-let lending continues to show a substantial annual rise.
Buy-to-let purchasing has showed greater annual growth than home-owner loans for the best part of the year. The CML said that this is in part a market recovery response, with buy-to-let lending declining more sharply than home-owner lending during the economic downturn.
Loans for home-owners for house purchase fell by 50% in volume terms from 2007 to 2009, while buy-to-let loans for house purchase fell by 71% during the same period. Buy-to-let represented 17% of total gross lending in August, a proportion that has remained more-or-less constant since the turn of the year. However, this figure was up from the 13% recorded in the same period in 2014.
CML suggest large BTL lending increase
The largest driver in the buy-to-let mortgage market was remortgaging, with the number of loans up by 51.3% annually. What’s more, the number of properties purchased was up by 26.5%.
CML chief economist Bob Pannell noted that, ‘seasonal factors pushed all categories of lending lower in August compared to July.’ He went on to say that, ‘however, the mortgage market continues to see year-on-year growth and we expect this to continue over the coming months.’