21 Nov 2012

Recovery Signs

Insights, Property, Publications

Figures from the Council of Mortgage Lenders (CML) show that lending is up by 4% compared with October last year. Overall gross mortgage lending in October rose by 13% to £12.9bn, the highest level since last November.

Bob Pannell, CML chief economist, said: “House purchase and re-mortgage activity both appear to have picked up recently, and this should be supported by an improvement in the availability and pricing of mortgages.

The Residential Landlords Association has warned that new landlords risk being left tens of thousands of pounds out of pocket because they are piling in to a buy-to-let boom without doing proper research. Banks are issuing the largest number of landlord loans since records began. One in eight home loans, around 1.5m, are for rental properties, according to watchdog the Financial Services Authority.

Source: Daily Mail and The Times

We say: Half full or half empty? Is increasing house lending really a sign of recovery or a harbinger of doom for gung-ho BTL investors? No doubt there are bargains to be had out there, but care and good advice is needed.