Value Of Loans ‘Reach Highest Level In Four Years’

By Rob Dixon

The increasing attractiveness of the buy-to-let market has been highlighted in new figures which have shown lending in the area to be at its highest level in four years, according to property specialists at Irwin Mitchell.

Research by the Council of Mortgage Lenders (CML) has revealed that total buy-to-let lending in 2012 stood at £16.4 billion, which marked a 19 per cent increase from 12 months earlier and a significant improvement on recent years.

It also found that almost 137,000 buy-to-let loans were advanced during the year, with lenders typically requiring a minimum 25 per cent deposit on such products.

A total of 36,700 buy-to-let loans were advanced in the fourth quarter of 2012, which marked both an increase from the previous three-month period and the final quarter of 2011.

Irwin Mitchell’s specialist Conveyancing team, which has vast expertise in providing legal support to those buying and selling property, have welcomed the new CML research and described it as the most convincing proof yet of improvements being seen in the market.

Eve Lake, an expert in conveyancing at the national law firm’s Sheffield office, said: “Despite the difficult conditions in the property market for the past few years, the area of buy-to-let has remained resilient as a place where much activity has been seen.

“Landlords in strong financial positions have been able to benefit and take advantage of some of the doom and gloom, particular when many people looking to take a step onto the housing ladder have been struggling to afford the move and have instead been seeking out property to rent.

“However, the fact that lending has reached its highest level in four years is a strong sign that confidence in general is on the rise. It will be interesting to see these figures develop over the course of the year and particularly whether new highs can be reached.

“We would also always urge anyone looking to either extend an existing portfolio or those taking their first steps to becoming a landlord to seek legal advice to ensure all legal aspects of becoming a landlord are addressed and considered.”

Read more about Irwin Mitchell’s expertise related to Buy To Let