While the availability of house purchase loans continues to suffer, the number of buy-to-let loans issued recently has gone the other way entirely.

Figures from the Council of Mortgage Lenders (CML) show that the number of new buy-to-let loans increased by 16% in the third quarter of 2011 while, during the same period, the value of mortgages advanced in the sector grew by 19%.

According to the statistics in the three months to September, a total of 34,500 buy-to-let loans were advanced representing an increase from 29,700 in the second quarter. In total, the value of lending reached £3.8 billion, up from £3.2 billion.

“With tenant demand remaining strong in the rental sector, some existing buy-to-let Landlords have been expanding their portfolios and the growth that returned to the sector in the preceding quarter has continued.” Paul Smee, Director-General of CML told thisismoney.co.uk

In the third quarter there were 18,580 loans for the purchase of buy-to-let properties accounting for almost 12% of all house purchase loans. This is still significantly lower than the first quarter of 2008 when 32,650 mortgages for buy-to-let properties accounted for 19% of all loans for house purchases.

“The recovery of buy-to-let from its low point in 2009 has helped improve supply and choice in the rental market” added Mr Smee. “Despite recent improvements buy-to-let lending volumes are still only around one-third of their former peaks.”

If you need advice or assistance on purchasing a buy-to-let properties or any other property transaction please contact our New Business Team of the Residential Department 01603 723774 or by e-mail to newbusiness@fosters-solicitors.co.uk.