Buy-to-let market settled, says CML

by Morag Lyall

The buy-to-let market has settled, the Council of Mortgage Lenders (CML) has said.

Figures released today (May 14th) show that for the first three months of 2010 the number of buy-to-let loans declined by 15 per cent to 22,000 on the quarter before.

This has been put down to the steep rise in the number of landlords adding to their buy-to-let portfolio during the stamp duty holiday, which allowed them to purchase properties without having to pay additional tax.

Stamp duty holiday ended in December last year, although it has been reintroduced for first-time buyers.

CML figures also showed that buy-to-let lending has remained flat over the last five quarters.

Commenting on the figures, Michael Coogan, director general of the CML, said: "Ignoring the effect of the stamp duty holiday, the lending figures show that the buy-to-let market has settled into a period of stable, low-volume activity.

"Generally, prospects for the rental market are good. But uncertainty over house prices, interest rates and the availability of mortgage funding is continuing to hold back the buy-to-let market at this stage."

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Published on: May 14, 2010

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