Buy-to-let still performing well

News Category: Industry News

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The buy-to-let mortgage market is performing "no worse" than would be expected, according to the Council of Mortgage Lenders (CML).

Keen to dispel rumours of a buy-to-let squeeze following the jump in mortgage arrears reported by Bradford & Bingley (B&B), the CML's Sue Anderson remarked that the market was still performing "pretty well".

B&B announced last week that it had seen a 52 per cent jump in investment landlords falling at least three months behind on repayments since the beginning of the year.

However, according to figures from the CML, only 0.9 per cent of landlords are in arrears of more than three months.

Ms Anderson notes that despite reports the CML sees little evidence for concern.

She told the Guardian: "Demand is still strong and the buy-to-let market is counter cyclical, as when people don't want to buy they want to rent.

"We aren't concerned about the sector."

However, commentators remain wary that fluctuations could put strain on landlords to sell their portfolios.


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