Lending constraints weren't enough to deter the resilient buy-to-let sector as 2007 drew to a close.
In fact, according to figures from the council of Mortgage Lenders, investors were taking advantage of the slower market and snapping up some bargain properties.
Factoring in remortgages, the total number of buy-to-let loans actually increased in the second half of 2007, rising to 179,100 from 171,800 in the first six months.
This was also 1.1 per cent higher than the 177,200 loans taken out during the second half of 2006, when interest rates were lower and house prices were still rising.
The strength of buy-to-let pushed the figure for outstanding mortgages to 1,038,000 at the end of last year, a meteoric rise from its introduction in 1996.
Not only is this 23 per cent higher than the total for a year earlier, but is also more than double the total number of outstanding loans recorded just four years ago.
With demand for rented property likely to remain high in 2008, the CML believes it will be an equally impressive year for buy-to-let.
Michael Coogan, CML Director General, comments: "Many buy-to-let loans have interest rates linked to interbank rates, so may have been hefty increases in payments when Libor rose to abnormally high levels in the second half of 2007. These are now likely to be returning to lower levels in line with the reduction in Libor rates since December last year. We expect to see a continuing healthy appetite for buy-to-let finance this year, in line with continuing expected consumer demand for private rental property." |