Newcastle Building Society: CML buy to let figures

Steven Marks, Lending and Operations Executive at Newcastle Building Society, comments on the CML figures: “The CML figures for the second half of 2007 reinforce the point that the buy to let market continues to be a core part of the overall UK mortgage market, with buy to let making up 10% of the total number of mortgages outstanding.

“As the CML points out, the fundamentals underpinning the buy to let market remain strong. Demands for rented accommodation remain high due to immigration and difficulties in first time buyers getting their foot on the property ladder. The more difficult economic climate, and expected increase in repossessions, will also force more people out of home ownership and into rented accommodation.

“Our own recent experience is that the slowing housing market and tougher lending criteria has deterred small time investors, however, the larger more experienced ones see good buying opportunities in the months ahead. In addition, and in common with the mainstream mortgage market, there will be good remortgage opportunities as many lenders harden their terms. Overall, therefore, accepting there will be a more cautious approach from lenders and investors alike, the buy to let market will hold up and continue to offer good opportunities on both sides of the fence.”