CML highlights positive signs in the buy-to-let mortgage market

Date:Thursday 13th May 2010
Author: Max Freedman

The buy-to-let mortgage market looks more positive if people take into account the end of the stamp duty holiday, according to the Council of Mortgage Lenders (CML).

Michael Coogan, director general of the organisation, made his comments after CML figures showed that buy-to-let loans declined by 15 per cent in the first quarter of 2010.

But he stated that there is actually evidence of a period of "stable, low-volume activity" if the effect of the stamp duty holiday is discounted.

Mr Coogan remarked: "Uncertainty over house prices, interest rates and the availability of mortgage funding is continuing to hold back the buy-to-let market at this stage."

In his view, landlords are faced with good prospects in the rental market and potentially in government fiscal policy, if the new Lib-Con coalition chooses to adopt a policy of higher investment in the rented sector.

This week, the Conservatives' George Osborne was confirmed as the new chancellor of the exchequer.