Buy-to-let mortgages on the rise

The number of people taking out buy-to-let mortgages increased in the second half of 2007.

That is according to new figures from the Council of Mortgage Lenders (CML), which show that buy-to-let mortgage lending reached £24.1 billion.

That signifies an increase on the £21.1 billion which was lent in the first half of the year and the £20.8 billion figure from the second half of 2006.

Commenting on the data, Michael Coogan, director general of the CML, said that he expects the buy-to-let mortgage market to continue to go from strength to strength.

"Tenant demand for private rented property remains strong, and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high quality homes to rent," he explained.

"Buy-to-let has remained resilient in the face of the funding constraints that have affected the sector and the wider mortgage market.

"We expect to see a continuing healthy appetite for buy-to-let finance this year, in line with continuing expected consumer demand for private rental property," continued Mr Coogan.

The Association of Residential Lettings Agents recently revealed that rental yields increased in January.

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