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Buy-to-let lending continues to rise

A property expert has welcomed the news that the number of buy-to-let mortgages being taken out has reached its highest level since 2007.

Sarah Barnes, partner and head of Residential Property at Napthens solicitors, says the figures reflect an increase in investor confidence and an improving UK economy.

According to data from the Council of Mortgage Lenders (CML), 33,600 new mortgages were taken out for property purchases between July and September 2015.

In September alone, 11,300 buy-to-let loans worth a combined £1.5billion were advanced.

Sarah Barnes said: “The buy-to-let sector has experienced growth year on year in terms of both the number of mortgages taken out and their value, for both new purchases and remortgage lending.

“This strong growth points towards an increase in landlord confidence due to improving economic conditions, with the amount of mortgages steadily rising and buy-to-let remaining a popular investment option.

“However, despite the continued growth, buy-to-let is still the fourth largest lending type, after first-time buyers, home movers and remortgaging.”

Figures also show first-time buyers took out 28,600 home loans in September, an increase of 10 per cent on the same month in 2014, while home movers took out 33,800 loans in the same period, a 15 per cent increase on September 2014.