Buy-to-let lending increased by 5 per cent in the second quarter of 2012, according to the Council of Mortgage Lenders.
CML data published today shows lenders advanced 33,200 loans worth £3.9bn in the three months to 30 June, up from 32,300 loans worth £3.7bn.
This is up 18 per cent from £3.3bn in the second quarter of 2011, when lenders advanced 29,100 BTL loans.
CML director general Paul Smee says: “”Buy-to-let is continuing to show signs of recovery, and growing broadly in line with expectations. The rental sector has grown strongly over the last decade or so and buy-to-let continues to help deliver a wider choice for tenants.”
The average maximum loan-to-value available on buy-to-let mortgages remained at 75 per cent, with the average minimum rental cover at 125 per cent. Both have remained broadly unchanged for the last three years.
The proportion of borrowers more than three months in arrears declined to 1.56 per cent in the second quarter, down from 1.69 per cent in Q1.
The CML says the proportion of buy-to-let properties taken into possession remained unchanged at 0.12 per cent, while in the owner-occupied sector the data showed a small decline from 0.08 per cent to 0.07 per cent.