Buy-to-let market still strong, despite rate rises


Wed 15th Aug, 11:27:09 BST

The buy-to-let sector remains buoyant, despite fears concerning rising interest rates, the Council of Mortgage Lenders (CML) has announced.

According to the latest figures released by the organization, UK borrowers took out 171,800 new buy-to-let mortgages, worth £21.2 billion in total, over the first half of the year.

In addition, the number of buy-to-let mortgages currently outstanding rose to 938,500, with a total value of £108 billion.

While the sector has slowed down slightly over the past few months, largely due to rising interest rates, buy-to-let now accounts for 12 per cent of all advances given out in the UK, outperforming the rest of the mortgage market.

In comparison, buy-to-let products accounted for just three per cent of all mortgages five years ago.

Malcolm Harrison of the Association of Residential Letting Agents recently advised prospective buyers to investigate the area surrounding a potential rental property.

"Take all the advice you can and insure that you're doing sums correctly. Go to wherever there is a lot of economic activity," he said.



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