The number of buy-to-let transactions in the second quarter of 2009 has increased, according to recent reports from the Council of Mortgage Lenders (CML).
The new figures show that there were 21,600 new buy-to-let loans advanced in the second quarter, totalling £1.9 billion. The figures also showed that the number of mortgage arrears seem to be decreasing too.
Although there’s still a way to go until the market is fully recovered from the effects of the recession, it’s certainly good news to see that the number of buy-to-let purchases being made has increased. It’s a positive sign that the situation for property investors is picking up again.
Rob Thomas, a senior policy advisor for CML, commented, “Whilst house price falls have limited the scope for some landlords to remortgage, there’s no evidence that landlords are exiting the market in large numbers and some landlords have the opportunity to make acquisitions and take advantage of higher yields.”
Low interest rates and declining house prices, along with the continued need for private rented accommodation, are two of the factors helping to boost the property market.
Ian Potter, from the Association of Residential Letting Agents (ARLA), also welcomed the news and said, “We’re encouraged by the fact that mortgage arrears seem to be declining, which is not only of benefit to landlords facing financial difficulty, but also to their tenants who have been threatened with the repossession of their home and who have little protection against this.”
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