Hamptons’ January Best Buy Mortgage Tracker showed that the proportion of buy-to-let purchase mortgages increased to 44.54 per cent in January – a 5 per cent increase on December and an 8 per cent increase on six months ago.
Buy-to-let purchase mortgages taken out by Hamptons clients have also increased, by 33.43 per cent in comparison to January 2007.
The brokerage said that the buy-to-let market appeared to be largely unaffected by the credit problems, with only novice investors being squeezed out of the market.
Home purchase loans at Hamptons were up by nearly 2 per cent, though down by 12 per cent on January 2007.
Jonathan Cornell, managing director at Hamptons International Mortgages, commented: “The large proportion of buy-to-let loans taken out by Hamptons customers at the beginning of 2008 is a marked contrast to the number taken out in January 2007 and this is a positive signal that the buy-to-let sector stands in good stead for a healthy 2008.”
Cornell added: “I would also hope that February’s Bank of England Base Rate cut will install some much needed liquidity back into the financial markets and restore a little consumer confidence.”
Darren Pescod, managing director of The Mortgage Broker Ltd, said he believed that the controversial sale and rent back market could be a key driver in buy-to-let growth.
“I haven’t seen a difference in trends. However, with the growing number of repossessions and the growth of sale and rent back plans, the numbers wouldn’t surprise me.
"If anything, it will be the sale and rent back market driving up any buy-to-let purchases. The yields are not attractive and only by a 20 per cent discount sale and rent back would it be attractive.”
