Increase in landlord property purchases drives up conveyancing demand

Property solicitors are increasingly being called upon to oversee landlord purchases, as tenant demand continues to drive growth within the domestic property sector.

Figures released by the Council of Mortgage Lenders show that the number of buy-to-let loans has increased by 16 per cent in the third quarter of 2011.

Between May and September, a total of 34,500 buy-to-let loans were advanced and the value of lending totalled £3.8 billion, up from £3.2 billion in the second quarter.

The figures show the highest levels of buy-to-let lending since the final quarter of 2008, indicating that confidence has returned to the market.

Nigel Terrington, Paragon Group chief executive, stated: "The 46 per cent year-on-year increase in the value of gross advances reflects landlords' growing optimism in the buy-to-let market."

"It is also interesting to note the sharp rise in house purchase numbers from the second quarter," he continued, stating that the rise indicates landlords are reacting to tenant demand.

Published by Jessica Shervin