The buy-to let market received a further boost today as Platform, the dedicated intermediary lender of Co-Operative Bank announced plans to inject a further £600million into the buy-to-let mortgage market, up almost a third on last year.
The move looks set to improve prospects for those seeking to invest in the sector and many lenders predict an increased level of interest from borrowers.
Although the number of buy-to-let mortgage issues dipped slightly in the final quarter of 2011, lending was still 48% higher than in the first quarter, according to figures from Mortgage for Business. The number of buy-to-let lenders was also up to 25 from 19 at the start of the year.
Managing director at Mortgages for Business, David Whittaker said:
"Buy-to-let is one of the few segments of the mortgage market that is really flourishing, and investors are still seeing strong returns.
"With economic conditions congealing, property prices will remain low and demand for rented property should hold steady, meaning the healthy returns available from buy to let show no signs of abating."
Falling house prices coupled with soaring rent may be driving growth in the buy-to-let sector, as Lee Gladwell, business development director at Platform, explained:
"Uncertainty around the economy, employment and house prices is continuing to fuel demand for the rental market."
"Our commitment to lend a minimum of £600m in buy to let loans in 2012 reaffirms our commitment to the sector."