Buy-To-Let Lending on the Rise

By the Beresfords Marketing Team

Buy-to-let lending rose by 12% in the third quarter of 2010 supported by ongoing demand for rental property. There were 26,900 buy-to-let loans advanced in the three month period, worth £2.8 billion. This quarterly rise of 8% by volume and 12% by value is the second consecutive quarterly increase in lending.

Compared to the third quarter of 2009, the volume of lending was up 14% and the value up 33%, from 23,700 and £2.1 billion respectively. According to the data published by the Council of Mortgage Lenders (CML), buy-to-let demand appears likely to increase.

John Lineham, Financial Services Director of Beresfords, comments: "The latest CML buy-to-let mortgage figures confirm that investors are continuing to flock to the property market, encouraged by improving mortgage terms and in particular the prospects for strong rental yields. I expect to see the number of buy-to-let mortgages secured continue to grow in the final quarter of the year and into 2011 as lenders and investors take advantage of the continuing strength of the rental market."

Steven Bond, Managing Director of Beresfords Lettings Division, believes: "People are realising that buy-to-let is a great alternative to other mainstream ways of investing. It is more flexible than a savings account or fixed term bond and unlike a pension, you have complete control over your investment.

"Many homeowners have substantial equity in their main home and we are working with many who are releasing some of their capital to invest in buy to let properties. Others retain funds in general savings and investment accounts but falling returns have led them to consider more viable alternatives such as property. In some cases people have inherited a property or own a second home and decide to rent it out instead of disposing of an asset that will invariably increase in value."

"The UK is primarily a home owning society and many people now have the confidence to consider buying to let as a natural investment option. It can provide a regular monthly income stream yet also offer excellent capital growth potential."

"Although many now have the confidence to pursue this venture, there is often still a fear of the 'unknown'. Additionally many lead busy lives and devoting sufficient time to such a project can also be a problem. Therefore investors are now looking for agents with a proven track record in the buy to let field who can deal with the entire process from start to finish."

"Beresfords are long established in the local lettings market and look after the investment portfolios of literally hundreds of clients. Although many are seasoned professionals, many have invested in a single investment property for the very first time."

For further information contact Beresfords buy-to-let investment team on 01245 397497 or email investment-team@beresfordsgroup.co.uk.