Buy-let continues to grow

The buy-let market has grown to such an extent that buy-let mortgage now account for just over a fifth of financial advisers’ business, it has been reported.

And it has continued to grow in the first quarter of 2007, despite an interest rate rise, according to Paragon Mortgages buy-let index.

Recent reports suggest that the market is enjoying higher rental incomes and higher yields overall.

The compilers of the buy-let index say that this points to an increasingly healthy buy-let sector that is experiencing “an upward trend”.

John Heron, Paragon managing director, commented: “Buy-let is the biggest niche sector in the UK mortgage market and our research shows that it is continuing to grow.”

In related news, recent figures from the Council of Mortgage Lenders revealed that buy-let mortgage account for 11 per cent of all mortgage lending.

And the market has recently seen the emergence of let-buy mortgage, although these are not yet established as a trend.

© Adfero Ltd

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