Data released by Chelsea showed that the number of buy-to-let loans advanced during the first seven months of 2005 was 33 per cent higher than it was for the same period last year.
Tom Gurrie, intermediary sales controller at the Chelsea, explained that although there is no doubt, as many economists have forecast, that the housing market has slowed from the buoyant levels of a few years ago, internal research from Chelsea showed the buy-to-let market is still on the increase.
Gurrie said: “The buy-to-let arena is very much occupied by financially-savvy borrowers who are very aware of market trends and the possible directionsthat the housing market will take.
“The majority are obviously confident that the market will remain strong enough for them to make a good return on their investments, hence its continued success.”
West Bromwich Building Society has also witnessed a boom in its buy-to-let business and reported a 46 per cent increase. James Taylor, mortgage product manager at West Bromwich, said: “There have been a number of well-documented predictions recently about the demise of this market.
“While the national story suggests that the market has slowed to some degree, as far as the West Brom is concerned, the sector is still very much alive. Following the recent improvements in our buy-to-let policy and criteria, our presence in this key market continues to grow and all the signs are that it will continue to do so.”
