Bradford and Bingley, the bank that has about 20% of the buy-to-let mortgage market, has said that the slowdown in mortgage lending has ended, as it announced a small rise in interim profits (August 2005).

Steven Crawshaw, the chief executive was quoted as saying that buyers were much more confident about the second half of the year: “I think we have seen the trough”, he said.

Buy-to-let loans are expected to increase ahead of the mortgage market, contrary to the view of analysts who believed that the market would be in the doldrums for a while yet. 

Other factors, which will have a positive effect on the housing market, include a decrease in interest rates, recently announced by the Bank of England, plus anticipation of a renewed interest in investment purchases as a result of new pension regulations in 2006.