Mortgage Figures Show UK Rental Market Stronger Than Ever
Buy To Let mortgages account for 12.7% of the overall UK mortgage market, the highest ever recorded figure since records began, according to new figures released by the Council of Mortgage Lenders (CML),
The total number of active mortgages in the UK stands at 11.3 Million, and buy to let mortgages total 1.44 Million of these equivalent to 1 in 8 mortgages.
The high proportion of buy to let mortgages not only proves the strength of the private rental sector (PRS), it also shows that landlords and investors are contrarian, adding to their property portfolios regardless of the way the property market is performing.
The increasingly tougher lending criteria set by lenders for property purchases has induced a great deal of growth in the private rental sector, with first-time buyers being priced out of the market.
Demand for buy to let property has never been stronger
Mark Long, Director of BDRC Continental, commented on the high levels of investment currently being seen in the PRS, saying, “Landlords consistently tell us that they see their property portfolio as forming a critical part of their pension provision for the future. On average, landlords intend to remain active in the rental sector for another 15 years or so, and see a combination of capital gains and rental income as underpinning their pension strategy.”
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