According to the data from Council of mortgage lenders (CMS), the number of buy to let mortgage property purchases has increased by 84,000 in 2011. The UK’s private rented housing supply has modestly increased because of this increase in the buy to let purchases.
34,800 buy-to-let mortgages were finalized in the last four months of year 2011 which makes the total of £4billion. Amongst these 15,600 were remortgages. The same was the volume of business in the summer season of 2010 which got better to 26,300 loans, worth £2.9billion, in the fourth quarter of that year.
In UK, for the last four months of 2011, 13% of the total exceptional value of the mortgages is portrayed by the buy to let mortgages while 11% of the total mortgage lending is represented by buy to let lending. The buy to let market touched its lowest point in 2009.
In 2007, when the total of quarterly lending was 93,000 loans of value £12.7billion the volume of buy to let business was down.
Because of the lender’s tiring efforts to show patience to home owners over extended time periods to facilitate them keep their houses, the repossession rate is getting higher. So in the buy to let sector the flexibility in timescales is normally greater.
In the property investment business, buy to let lending performs well. Through this the rented property demand remains high which provides the buy-to-let a strong validation.
These statistics does not show that the chances for people considering stepping in the property investment business, that is the first time buyers, are decreasing due to buy to let crowding.
The requirement and advantages of private rented housing cannot be over looked since the need of mobility is fulfilled by good quality private rented houses. Privately rented sectors should be present all over the country to meet the needs of households and this is what, one can expect from the present condition of market.