Growth in BTL is Good News for Housing Market
21st May 2012
John Heron, Director of Paragon Mortgages, comments on the CML's buy-to-let results for the first quarter of 2012.
"When you look at how the buy-to-let market is performing year-on-year we can see a healthy increase in business levels and a further decrease in arrears. The total gross buy-to-let lending in Q1 2012 is 32% higher than Q1 2011, which is a significant improvement and demonstrates the level of confidence in the market.
"Sustained growth in buy-to-let and the wider private rented sector will be fundamental in helping to provide more flexible and affordable housing to match the requirements of those in society with the greatest need. Whilst we are still not operating at 2007 levels the market is steadily growing. It is interesting to see that buy-to-let is also increasing its share of the mortgage market - 12.8% in Q1 2012 compared with 12.2% in Q1 2011.
"There is still much work to be done in the coming months to grow the market further. Paragon's recently commissioned research shows that a fifth (20%) of landlords are looking to purchase buy-to-let property this year which should drive further growth in buy-to-let."
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