Buy-to-let loans decreased in 2009

The number of buy-to-let loans approved in 2009 was 58 per cent lower that the previous year, new figures have shown.

Data from the latest report from the Council for Mortgage Lenders (CML) has revealed that 93,500 buy-to-let loans were approved last year, compared to 222,700 in 2008.

The report also showed that the £2.4 billion worth of but-to-let deals in the fourth quarter of 2009 was £1.6 billion down on the same period of the previous year.

However, the figure represented a £300 million increase on the third quarter of 2009 with 25,800 new deals approved, compared to 23,700 in the three months to September 2009.

Michael Coogan, CML's director general, said: "The figures show that the buy-to-let market continued to improve, albeit slowly, throughout 2009, and we are encouraged by this recovery.

Mr Coogan expressed concern that red tape in the housing market could damage the recovery of the buy-to-let sector.

"We are concerned that future, wrongly directed, regulation may actually prevent buy-to-let playing its vital role in providing good quality homes and wider housing choices for people who cannot afford home ownership or do not qualify for social housing," he added.

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