Buy_to_let Still Dominates
Published / Last Updated on 25/11/2007
Council of Mortgage Lenders CML
The buy-to-let market is continuing to dominate the mortgage market. Figures released by the Council of Mortgage Lenders (CML) show an increase of 37 per cent compared with 2006 in other lending, which is mainly as a result of increased interest in buy-to-let.
Landlords are making the most of the demand for rented accommodation, which might allow for the slight fall in the house purchase market of 11 per cent.
Affordability still remains the stumbling block for first time buyers and borrowing 3.4 times their salary is the average.
Our view
The property market continues to stagnate and those that can afford more property are buying which is why buy-to-let is still increasing. This is doing nothing to help first time buyers. Expect a, interest rate cut after Christmas.
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