Buy-to-let lending is the highest it's been in two years, according to recent figures from the Council of Mortgage of Lenders (CML), Clear Property Investment is pleased to hear.

The CML findings, at the end of June show 24,900 mortgages were taken out over a three month period - an increase of 13 per cent and 15 per cent higher than the corresponding period last year.

It leads analysts to believe that the stranglehold on these mortgages is beginning to loosen.

The figures were announced at the same time Northern Rock announced a change in fee structure and a cut on buy-to-let mortgages of around 0.6 per cent.

In an article in the Sunday Times newspaper, Trinity Financial broker Aaron Strutt said: "It is encouraging that Northern rock is reducing rates for those with smaller deposits, which just about scrapes into the best buys. There are now more buy-to-let mortgage options available to investors and more lenders have come back in to the market - typically smaller building societies."

Meanwhile The Mortgage Works appears to be the most popular buy-to-let lender with mortgages available to prospective landlords able to put down a 20 per cent deposit.

More good news comes from the property portal Findaproperty.com which stated that rents were at a peak - or at least their highest level since January 2009.

Property Analyst at the portal, Nigel Lewis, claimed the increase in buy-to-let was a "natural progression." He added: "Both rents and yields have been rising for several months now, prompting investors to once again look at property for long term gains."

Property prices are expected to keep falling, even into 2011, resulting in more bargains for those willing to invest. The fall has been blamed on tough mortage restrictions - especially for the first-time buyer, rising unemployment and a rise in general household bills.

However, lending is still failing to satisfy demand with criteria remaining stringent in many cases and prompting many analysts to call for the return of specialist lenders with wholesale funds which would result in growth within the sector and much-needed competition.

Andy Young, Chief Executive of Landlord Centre admitted the growth in the buy-to-let market was encouraging but added that more needed to be done from mortgage lenders.

View other news from August 2010