Buy to let mortgage figures rise

The rise in gross advances is encouraging and reflects an increased level of confidence amongst landlords and lenders in the buy-to-let mortgage market, it has been claimed.

This assertion comes after the latest buy-to-let gross lending and arrears figures from the Council of Mortgage Lenders revealed a 12 per cent increase in buy-to-let gross advances to ?2.8 billion.

On an annual basis, in fact, the volume of lending is up 14 per cent and the value up 33 per cent.

Nigel Terrington, Paragon Group chief executive, observed that tenant demand is extremely strong and the private rented sector needs to expand to deal with the "increased numbers of people wanting to live in rented homes ".

"Therefore, it is pleasing that the value of loans for house purchase hit its highest level since the final quarter of 2008 and the volume of loans rising for the third successive quarter," he remarked.

"Although we are still a long way from normal market conditions and lending is low by historical standards, the market is heading in the right direction and is growing again."?