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Buy to let showing resilience

Buy-to-let lending figures have dropped less sharply than the rest of the market, according to the Council of Mortgage Lenders.

Its latest survey shows there were 144,600 new buy-to-let loans in the first half of this year, down from 176,500 in the second half of 2007. This 18 per cent decrease compares with a 28 per cent decline in all purchases and remortgages.

Arrears in the BTL market are lower than in the wider mortgage market, with 1.1 per cent of loans over three months in arrears, compared with 1.33 per cent for the whole market. The CML says there are 1,103,000 BTL mortgages worth £132.5bn, a 25 per cent rise in overall stock value from a year ago.

CML director general Michael Coogan says: “The shortage of mortgage funding is creating similar problems for buy-to-let landlords as it is for other borrowers. However, 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.”

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