He said: “This fall in activity isn’t as negative as it appears on the surface. We expected there to be a rush on buy-to-let mortgages at the end of last year and a subsequent drop in activity coming into Q1 2010. What is encouraging is that the likes of TMW beginning to loosen the purse strings. Their new 80% LTV is a very welcome addition and will encourage other lenders to follow suit.
“With new players about to emerge onto the scene more funding will be brought to the market and the prospect of fresh liquidity is excellent news. The increase in LTVs and new money entering the market might not be reflected in quarter two’s figures, but the activity numbers will look a lot stronger moving into the second half of the year. The future is certainly looking a lot brighter for the buy to let sector.”