The latest Bank of England report on the Buy-to-Let market has underlined the continuing growth in the sector.
Statistics from the report show that Buy-to-Let mortgages represented15% of the overall outstanding residential mortgage loans at the end of 2014. Gross advances of new loans have recovered to reach the same levels as in 2005.
Statistics from the report show that overall gross lending stands at £27.4bn. This reflects the major increase in supply and demand, with Buy-to-Let now accounting for 45% of all house purchases in the residential sector. Buy-to-Let remortgages have followed a similar trend, increasing to 52% of all transactions. This can be attributed to a larger variety of products and reductions in specific criteria.
Additionally, the number of Buy-to-Let products widely advertised has more than doubled since the end of the financial crisis. Despite the majority of loans standing below 75% Loan to Value (LTV), there his been a rise in loans between 80-85% LTV since 2013.
Bank of England report shows BTL rise
More encouraging news came with the Council of Mortgage Lenders (CML) indicating that arrears on Buy-to-Let lending fell again during 2014. However, the rate of possession for Buy-to-Let properties was double that of owner-occupier homes. The CML suggested that this was down to lenders offering more options and often more time to help owner-occupiers to battle through periods of financial hardship.