Britain’s buy-to-let market continued to grow in the second half of 2007, with mortgages rental properties rose by 13.6 per cent.

The Council of Mortgage Lenders (CML) said that buy-to-let lending reached £24.1 billion – up £3.3 billion since the last six months of 2006.

The CML expects the buy-to-let market to remain strong through 2008, as first time buyers struggling to get onto the property ladder choose to rent instead.

“Tenant demand for private rented property remains strong, and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high quality homes to rent,” said CML director general Michael Coogan.

“Buy-to-let has remained resilient in the face of the funding constraints that have affected the sector and the wider mortgage market,” he added.

“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.”