The value of buy-to-let mortgages taken out by borrowers during Q3 2012 increased by 8% over the previous quarter, to reach £4.2bn and number of individual loans totalled 34,400, up by 2% on the previous quarter in the Q2 2012, according to the Council of Mortgage Lenders (CML).

Activity in the buy-to-let lending market appears to be slowly recovering as the £11.8bn lent in the first nine months of 2012 is 19% above than the £9.9 billion advanced over the same period in 2011. However buy-to-let lending this year is predicted to total a little over one-third of the level reached at the market peak in 2007.

Paul Smee, CML director general, said: "Buy-to-let lending is continuing to recover, and to grow in line with expectations. As well as continuing to fund owner-occupation, lenders are contributing to the expansion of a strongly growing rental sector, helping to deliver choice and mobility for tenants. The growth of private renting looks set to continue in the years ahead, and lenders are committed to playing a full part in the debate about how best to meet the evolving needs of tenants in the future."

The balance between buy-to-let lending for house purchase and remortgaging in the third quarter remained broadly unchanged. Lenders advanced 18,680 loans for house purchase (54% of the total) and 15,360 for remortgaging (45%). By value, lending was evenly split, with £2.03 billion advanced for house purchase and an identical sum lent for remortgaging.