Buy-to-let lending increased in the second quarter

Buy-to-let lending increased by 5% in the second quarter of 2012, according to figures from the Council of Mortgage Lenders. In the three months to June, mortgage lenders advanced 33,200 loans, worth £3.9 billion, up from 32,300 mortgages, worth £3.7 billion in the first quarter. Year-on-year, the buy-to-let market continued to grow strongly, with the volume of loans up 14% (from 29,100) and the amount advanced up 18% from £3.3 billion. The stock of buy-to-let mortgages continues to grow. At the end of the second quarter, the number of outstanding loans totalled 1,416,000, worth £160.7 billion. The average maximum loan-to-value available on buy-to-let mortgages remained at 75%, with average minimum rental cover at 125%. Both have been broadly unchanged for the last three years. Commenting on the figures, CML director general Paul Smee, said: "Buy-to-let is continuing to show signs of recovery, and growing broadly in line with expectations. The rental sector has grown strongly over the last decade or so, and buy-to-let continues to help deliver a wider choice for tenants." August 10, 2012