Buy To Let Lending

In the second half of 2000 lenders made 25,700 buy-to-let loans, totalling £2.1 billion.  The latest figures are based on a survey of 39 lenders who are active in the buy-to-let market, and who together are believed to represent over 90% of all buy-to-let lending.

It is not possible to draw reliable comparisons with earlier periods, because the number of contributing lenders increased substantially during the second half of 2000.  However, by comparing the volume of business undertaken by those lenders who contributed to the surveys in both the first and second half of 2000, the CML estimates that buy-to-let lending grew by around 10% (by number of loans) and 12.5% (by value of lending) between the first and second halves of 2000.

Additional data from the University of York’s “Index of private rents and yields” shows that private rental property continues to offer very attractive yields at present – 8.3% gross in the third quarter of 2000.  The overall rate of return has been even higher taking into account increases in the capital value of property.  However, there is significant regional variation.

Commenting on the latest results, CML Deputy Director General Peter Williams said –

“Buy-to-let continues to capture the public imagination, with buyers attracted by the rental returns available and the potential increase in capital values.  Lenders’ experience in this sector has so far been extremely positive with very low levels of default.

“People thinking of buying property to let should not expect instant returns and should be aware that there are potential risks as well as rewards.  There are responsibilities associated with being a landlord, and it is important to consider a whole range of factors before deciding to buy a property to let.  But for many people, buying to let represents an attractive complement to financial investments.”

Bookmark with:

• Delicious
• Digg
• reddit
• StumbleUpon

Don’t know what this is?

Read the 50connect Guide To Social Bookmarking.