Insurance News Archive
Buy-to-let mortgage sales 'surge'
New figures released today show that buy-to-let mortgages have "surged" in popularity and now make up 14 per cent of all mortgages handled by advisers.
The research, which was carried out by Paragon Mortgages, shows "strong growth in the proportion of mortgages arranged for the acquisition of buy-to-let property".
This figure has increased from six per cent in June 2001 and ten per cent in December 2004, according to the study.
The growth in buy-to-let may be reflecting a decline in the number of first-time buyers, which decreased from 11 per cent of all mortgages six months ago to the current figure of 9 per cent. The proportion five years ago was almost 20 per cent, the research reports.
"Remortgaging levels have eased slightly and first-time buyer activity remains subdued," said John Heron, managing director of Paragon Mortgages.
"But buy-to-let continues to be busy, having followed a steadily upward trend over the past 18 months.
"Landlords know that long term demographic trends continue to underpin the private rented sector and are adding to their portfolios based on unabated demand from tenants," he commented.
Affordability of homes for first-time buyers has been the subject of media and government attention over recent months.
The average age of a first-time buyer is now 34, according to recent research by SmartNewHomes.com.
07 Jul 2006