According to the latest buy-to-let survey results from the Council of Mortgage Lenders, buy-to-let lending still remains very subdued and ongoing challenges remain, but there has been some recent improvement.

The CML say that in the second quarter of 2010 the number of buy-to-let mortgages taken out was 24,900 which represents an improvement of 13% on the 22,000 recorded in the first quarter of 2010 and some 15% higher than the 21,600 in the second quarter of 2009.

The value of buy-to-let lending in the first quarter was £2.4 billion, of which £1 billion was from re-mortgages. Although BTL business activity is just over a quarter of the levels of three years ago, both the number and the value of buy-to-let loans were at their highest level since the fourth quarter of 2008 (other than in the fourth quarter of 2009 - where demand was artificially inflated by the end of the stamp duty concession).

As at the end of June 2010, there were 1.26 million buy-to-let mortgages outstanding, worth a total of £149 billion. By value, buy-to-let mortgages accounted for 12% of all mortgages, the highest proportion since CML records began.

In the buy-to-let market, CML say that arrears cases have improved markedly. Repossession rates remain higher than in the owner-occupier market. not least because of the extended forbearance that lenders extend to home-buyers to try to help prevent them losing the homes in which they live. In the buy-to-let market, a "receiver of rent" may also be appointed, instead of the lender taking possession of the property.

Michael Coogan, CML director general, said: "The buy-to-let market has continued to grow, albeit slowly, throughout the period since the credit crunch. And with fewer people able to afford the entry costs to home-ownership, as well as the pressure on social housing, tenant demand for private rented property will remain strong. Finance for private landlords, whether institutional or individual, is crucial if the UK is to have enough homes to meet the needs of the population. Funding conditions for lenders remain tight, but there is every reason to expect the buy-to-let sector to continue to make a powerful contribution to helping meet the countrys varied housing needs."