Gross buy-to-let lending was £8.5bn in 2009, down from £27.2bn in 2008. There were 93,500 buy-to-let loans advanced in 2009, down 58% from the 222,700 buy-to-let mortgages which were advanced in 2008.
Overall, buy-to-let lending represented only 5.9% of all mortgage lending in 2009, compared to 10.7% in 2008.
However, on a more positive note, new buy-to-let lending increased for the second consecutive quarter from 23,700 loans in Q3 to 25,800 in Q4. Gross advances totalled £2.4bn, an increase of £300m from Q3. Buy-to-let arrears of more than three months dropped from 26,400 in Q3 to 24,500 in Q4.
Michael Coogan, director-general at the CML, said the figures showed that the market had improved in 2009, although he added that possible regulation could hinder the nascent recovery of the sector.
He added: “We are concerned that future regulation, wrongly directed, may actually prevent buy-to-let from playing a 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.”
Simon Gordon, head of communications at the National Landlords Association, said the Government should encourage lenders to get credit flowing rather than wasting effort on further legislation.
He added: “The Government should take notice of these figures. They demonstrate the resilience of the buy-to-let market as arrears were down 37% year-on-year. Fewer landlords experienced financial difficulty and fewer are struggling to meet mortgage payments.
