Rise in buy-to-let mortgages in 2011

The amount of properties being purchased with buy-to-let mortgages has risen by around 84,000 in 2011, according to figures produced by the Council of Mortgage Lenders (CML).

The CML results indicated that during the last quarter of 2011, a total of 34,800 buy-to-let mortgages of which 15,600 were remortgages were advanced with a total value of £4 billion.

These figures were almost identical to those registered by the CML in the third quarter when 34,300 loans worth a total of £4 billion were generated.

However the findings reflected a major increase on figures from the fourth quarter of 2010 when just 26,300 loans were advanced for a total of £2.9 billion.

These numbers remained some way below the height of the market seen during the third quarter of 2007, when lending totalled over 93,000 loans worth a total £12.7 billion.

But despite this, CML director Paul Smee remained upbeat for the market prospects.

"Demand for rented property remains high, so the rationale for buy-to-let remains strong, and there is little reason to foresee any change to this positive outlook for the sector," he said.