The credit crunch has seen a drop in the number of buy-to-let loans agreed this year.
According to figures from the Council of Mortgage Lenders (CML), buy-to-let loans were down to 144,600 for the first six months of 2008, a fall of 18 per cent on the last two quarters of 2007.
It was also the first time in three years that buy-to-let borrowing had shown a decline.
Those buy-to-let mortgages that were agreed tended to require higher deposits, with a loan average of 83 per cent of the value of the property.
Despite the fall in buy-to-let lending, rents are predicted to hold up.
Michael Coogan, the CML’s director general, said: “We expect the rental market to remain underpinned by strong demand, partly because some people who would like to buy a home are being forced to carry on renting for now.”
Date:28 August 2008
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