Rise in buy-let activity

Activity in the investor and buy-let landlord sector was continuing to rise at the end of 2006, according to figures just released.

In total, 70 per cent of all buy-let applications in December were for mortgages on properties intended for letting – a 23 per cent rise on the previous month.

Alliance & Leicester says it has seen a month on month rise in the number of buy-let applications since they first entered the market six months ago.

Average deposits by investor landlords were also up by over £1,500 in December, compared with the previous month.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, comments: “We are continuing to see an increase in buy-let applications, with figures on an upward trend right up until year end.

“This seems likely to pave the way for solid growth into 2007 for this market.”

The figures also highlight that the majority of investor landlords want fixed mortgage repayments, with two or three year fixed rates comprising over three in five (61%) of products sold.

© Adfero Ltd

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