Buy-to-let lending predicted to rise
Posted by Lucy Wooldridge
Private rented UK property investment could be boosted by a predicted increase in buy-to-let lending.
According to David Whittaker, managing director at Mortgages for Business, lending for landlords to purchase new stock is set to increase next year, which could make it easier for people to invest in buy-to-let properties.
"I see buy-to-let being a higher percentage of the UK residential mortgage market because it is a subset of that market, as it is the same stock that we might live in," he said.
"In a market where the UK residential mortgage market itself might be soft, buy-to-let could be a higher percentage of it in quarter four and going into 2012."
Mr Whittaker explained that buy-to-let's share of the mortgage market declined significantly in the wake of the 2008 position, but that it is now beginning to recover.
"Historically, it ran at about 13 per cent of the market, but dropped as low as eight and a half or nine per cent of the market in 2009, so you could say that all it is doing is re-establishing its status quo relationship with the residential mortgage market as a whole," he commented.
It follows the announcement earlier this week that Paragon Mortgages won the prestigious 'best buy-to-let portfolio lender' title at this year's Your Mortgage Awards.
Paragon re-entered the buy-to-let market last year after suspending new lending following the recession.
John Heron, Paragon Mortgages managing director, said: "Our return to new lending in 2010 gave portfolio landlords access to a lender that understands their needs and financial requirements, something that had obviously been missing from the market.
"It is therefore pleasing to be recognised by such a prestigious and highly coveted award."
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