Martin and Co Letting and Estate Agents in Sutton have discovered that even the most bullish buy-to-let analysts have been surprised by new mortgage figures. These show a 65 per cent surge in the first quarter of 2014 compared to the same period last year.
Buy-to-let mortgage advances in the January-to-March period reached £6.8 billion, up 65 per cent from £4.1 billion the year before, according to Bank of England data.
The figures also show buy-to-let lending accounted for 14 per cent of all mortgage advances in Q1 2014, up from 12 per cent the year before.
Remortgaging loans - some undertaken to fund buy-to-let investments - totalled £12.9 billion in the first quarter, a 29 per cent rise on Q1 2013. The remortgaging total represents 27 per cent of all mortgages issued in January to March.
Later this month the Council of Mortgage Lenders issues its latest figures; some analysts expect them to show that the buy to let mortgage market is on track to hit at least £25 billion over the full calendar year of 2014 – that is a 20 per cent increase on 2013.
We believe that this trend is likely to continue as private renting becomes even more popular.