Buy-to-let "an established market", says Alliance & Leicester

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New figures from the Council of Mortgage Lenders (CML) show that the buy-to-let market is "established", says Alliance & Leicester.

Commenting on the statistics published this week, the mortgage provider welcomed a trend towards investment rather than equity release.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: "It is encouraging that more than half of the buy-to-let lending in 2006 related to the purchase of new investment properties rather than remortgaging."

"The buy-to-let market looks set to continue to grow," he added.

Meanwhile, the average income multiple being taken out by first-time buyers rose to its highest level ever in December 2006.

First-time buyers are now taking mortgages worth an average of 3.31 times their salary, according to the CML report.

This has resulted in mortgage repayments which total 17.9 per cent of the typical first-time buyers annual income.

Despite this, the CML claimed that first-time buyers accounted for 36 per cent of all new lending in the month.

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