26,900 buy-to-let mortgages were advanced in Q3, worth a total of £2.8bn. This quarterly rise of 8% in volume and 12% in value is the second consecutive quarterly rise. The volume of lending was up 14% and the value up 33%, from 23,700 and £2.1bn respectively, on Q3 2009 figures.
The figures above come as no real surprise at a time of ongoing demand for rental property and the problems facing those trying to get on to the housing ladder. Buy-to-let lending is however still at a low level in historical terms but this 12% rise is encouraging and is a sign that confidence is returning amongst buy-to-let lenders and landlords.
Michael Coogan, director-general of the CML said:
''We would expect buy-to-let demand to pick up further if current rising rental trends continue and house prices remain broadly stable. However, there is short term uncertainty as a result of the unresolved debate on housing benefit and landlords' response to new limits.
''The bigger question is whether there will be sufficient supply side capacity to meet that demand, as the number of buy-to-let lenders dwindled in the credit crunch after 2007 and is yet to be fully restored.
''However, it is clear that in a market where access to home-ownership has become more difficult, the private rental sector is experiencing, and will continue to benefit from, high levels of demand for good quality housing.''