CML reports continued buy-to-let growth

The value of buy-to-let mortgages taken out in the third quarter of 2012 totalled £4.2 billion, an increase of 8% over the £3.9 billion advanced in the preceding three months, according to the Council of Mortgage Lenders (CML). The number of loans advanced in the three months to the end of September totalled 34,400, 2% more than in the second quarter of 2012 (33,600). Buy-to-let lending in the first nine months of 2012 amounted to £11.8 billion, 19% higher than the £9.9 billion advanced over the same period in 2011. The average maximum loan-to-value available on buy-to-let mortgages remained at 75%, with an average minimum rental cover of 125%. Both measures have remained largely unchanged for more than three years. Commenting on the figures, CML director general Paul Smee said: “The growth of private renting looks set to continue in the years ahead, and lenders are committed to playing a full part in the debate about how best to meet the evolving needs of tenants in the future.” November 9, 2012