Buy-to-let market grows 7%

10th Feb 2011 12:16

The buy-to-let market grew by 7% in 2010, according to the Council of Mortgage Lenders (CML), as loan performance improved strong rental demand continues. There are 1.3m buy-to-let mortgages worth £152bn and that accounts for 12% of the whole mortgage market. The value of lending in 2010 rose 22% to £10.4bn, with the average size of the loan increasing to more than £100,000. Home buyers' are finding It difficult to raise the size of the deposit they require to buy so this is increasing demand for rental properties. The buy-to-let market will continue to benefit from this. Rising interest rates remain a potential danger, as does the potential for rent arrears. Buy-to-let lender Paragon has expanded its product range in an attempt to gain market share in the are of small-scale landlords. Paragon returned to the buy-to-let market in September.