The number of loans was up 12% compared to June and there was an increase of 9% in value. Compared to July 2013, this was a 18% increase by volume and 26% by value.
Within the overall total of buy-to-let loans, 9,600 were advanced in July for house purchase and 7,800 for remortgage. The number of buy-to-let house purchase loans was up by 17% compared to June and up 29% compared to July last year. This totalled £1.2bn in value, up 20% on June and up 41% on July last year.
The number of remortgage loans increased compared to June, but at a lower rate than house purchase lending, up 8% and up 9% compared to July last year. These loans had a total value of £1.2bn, up 10% on June and 20% on July last year.
Paul Smee, director general of the CML, commented:
“The market has shown steady growth in house purchase and buy-to-let over the past few months with general improvements in economic factors across the UK allowing for more people to enter the property market.
"There have been many factors over the past year that could have caused disruption but the market has remained resilient and lenders have shown themselves adaptable to all this change. The CML will continue working towards making sure future initiatives affecting the market, such as the European Mortgage Credit Directive, are introduced with equally minimal disturbance to borrowers and lenders."
Jonathan Samuels, CEO, Dragonfly Property Finance, comments:
"The buy-to-let market is experiencing another sharp boost. Even in August activity levels were exceptionally high. Rising values have priced even more people out of the market and landlords are positioning themselves for a new surge in demand.
"For the number of buy-to-let house purchases to have risen by nearly a third on a year ago shows that demand for buy-to-let remains very strong. Prices are high even for professionals but achievable rents mean yields have remained robust. In the capital and South East, this is especially the case.
"In recent years, landlords have done very well out of the rental market and are now actively building their portfolios. It's been said that buy-to-let was looking toppy but the reality is that this sector of the property market has plenty of legs yet."