There were 109,000 completions over the course of 2011, 6% more than the previous year.

The number of housing starts, however, fell by 4% between 2010 and 2011 to 98,250.

On a seasonally adjusted basis, the number of completions rose by 2% between Q3 2011 and Q4 2011, from 26,180 to 26,730.

Meanwhile the number of housing starts climbed by 6% to 25,240 over the same period.

However, the number of repossessions in Q4 2011 marks a 9% fall on the 9,300 properties repossessed in the previous quarter.

The number of properties repossessed in 2011 as a whole was 36,200, or 0.32% of all loans, down from 37,100 repossessions at 0.33% of all loans in 2010.

The figures also show that there continued to be a modest improvement in arrears across all bands in Q4 2011, and in 2011 as a whole compared to the previous year.

At the end of 2011, 159,400 mortgages had arrears equivalent to 2.5% or more of the mortgage balance, down by 7.5% compared to the 172,400 mortgages in arrears at the end of 2010.

Buy-to-let properties accounted for 5,900 of the repossessions in 2011, up from 4,700 in 2010.

The overall repossession rate was 0.32% in 2011 – 0.31% on owner-occupied properties, and 0.42% on buy-to-let. This compares with an overall rate of 0.33% in 2010 – 0.32% on owner-occupied properties, and 0.36% on buy-to-let.

However, in terms of arrears the buy-to-let sector outperformed the owner-occupier sector.

While the 3 months arrears rate stood at 1.98% of all mortgages at the end of 2011, the proportion was higher among owner-occupiers at 2.06% than among buy-to-let mortgage holders, which stood at 1.38% if receiver of rent cases were excluded and 1.79% if included.

The CML says that although arrears and repossessions throughout 2011 were fairly stable, it has no current plans to revise its forecasts for 2012.

It says that worsening unemployment levels and continuing pressures on the cost of living are likely to result in a further deterioration on household finances this year, with repossessions expected to total 45,000, up 24% on 2011’s total.

The CML also expects there to be 180,000 mortgages in arrears of 2.5% or more by the end of the year.

Paul Smee, director-general of the CML, says: “Low interest rates and good arrears management by lenders are helping the vast majority of those borrowers who face difficulties to keep their homes and get back on track.

“This will continue, but in the face of wider economic difficulties and rising unemployment, we are concerned that there will be a higher number of people facing more serious problems in 2012.”

During the fourth quarter of 2011, a total of 34,800 buy-to-let mortgages were advanced, with a total value of £4bn.

This was virtually identical to the volume of business in Q3, 34,300 loans worth £4bn, but up on Q4 of 2010, 26,300 loans worth £2.9bn.

Compared with the height of the market in Q3 of 2007, when quarterly lending totalled over 93,000 loans worth £12.7bn, the CML says the buy-to-let market continues to operate at relatively subdued levels, but it is clearly continuing to recover from its low point in 2009.

Buy-to-let mortgages account for nearly 13% of the total outstanding value of mortgages in the UK, and buy-to-let lending represented nearly 11% of total gross mortgage lending in the fourth quarter of 2011.

Paul Smee, director-general of the CML, says: “Buy-to-let lending continues to perform well. Demand for rented property remains high, so the rationale for buy-to-let remains strong, and there is little reason to foresee any change to this positive outlook for the sector.

“These figures do not suggest that buy-to-let is crowding out first-time buyers; more that it is performing a really important role within the overall housing market. The benefits of the availability of good quality, private rented housing should not be overlooked, especially as there are many households which need the flexibility and mobility that the private rented sector is well placed to provide.”

By mortgage strategy

The lender is looking to offer a variant of its family guarantee mortgage which requires the borrower’s parents to deposit savings with the lender rather than taking a charge on their property.

Aldermore says it will pay a competitive rate of interest on the savings, and when the LTV on the mortgage falls below a certain level, estimated to be around 75%, it will release the money.

Charles Haresnape, managing director of residential mortgages at Aldermore, says the details are still being worked out but he expects to bring the product to market this quarter.

He says: “We see this as giving parents another option, so if they don’t want to gift a deposit to their child or put a charge on their property, they can put their savings with us in lieu of a deposit and still retain ownership of them.

“This is Aldermore looking at different options for first-time buyers and doing its bit to send out a positive message to consumers and help revive the first-time buyer market.”

In September 2011 the lender was the first to launch a 100% LTV mortgage since the onset of the credit crunch. It has a three-year fixed rate of 6.48% and parents, step-parents or grandparents are asked to provide a guarantee secured against their residential property for the amount of loan above 75% LTV.

Housing market this year, according to HSBC, as young people are unable to buy and older homeowners are unwilling to sell.

The 2012 HSBC Moving Home Survey, which asked more than 2,000 adults about their home buying and selling intentions over the next six months, revealed that only 12% are thinking about moving home or getting on the housing ladder.

Of those householders not looking to move, 61% of people aged 55 and over said it was because they are happy with their current property, compared to just 28% of those aged 34 and under.

Of those people aged 34 and under who are not planning to buy or sell a property, the main reasons include having an insufficient deposit (29%), concern about not getting a mortgage (15%) and fears about employment prospects (14%).

An additional 10% said they simply did not wish to own a home.

The main reasons people aged 55 and over are thinking of selling a property are to downsize (36%) and release some or all of the equity held within it (33%).

The key motivations for younger people wanting to buy or sell include to get on the property ladder (31%) and the need for more space or to upsize (27%).

Peter Dockar, head of mortgages at HSBC, says: “Our research suggests that the current economic climate is of particular concern to younger people who either want to get on the housing ladder or move on to a larger property.

“All this supports the prediction from the Council of Mortgage Lenders that lending will fall this year.  However, HSBC has no intention of closing its doors to customers.”

Kent Reliance Banking Services, The Mortgage Works, Saffron Building Society, Leeds Building Society, Aldermore and Clydesdale Bank are all offering 80% LTV buy-to-let deals.

Kensington, which pulled its 85% LTV buy-to-let deals in September 2011, is currently offering no buy-to-let products at all.

A spokesman for Kensington says this is a temporary measure and it plans to launch new buy-to-let products soon.

Data from Mortgage for Business shows there are currently 21 different buy-to-let products in the market at 80% LTV or above.

As recently as May 2010 there were no buy-to-let products at all in this LTV band.

David Whittaker, managing director at Mortgages for Business, says: “This is great news for landlords and investors and demonstrates the growing confidence of lenders in this sector who see buy-to-let as more profitable than homeowner lending.

“Between them, there is a good range of products on offer from two year discounted trackers to five year fixed rates. Some even come with flat arrangement fees which really start to make sense for investors looking to borrow larger sums.”

The Halifax Buying vs. Renting Review shows that the typical monthly cost of buying a three bedroom house was £600 in December, 16% cheaper than the average monthly rent of £716 on the same property type.

The review tracks changes in the cost of buying and renting property, taking into account mortgage payments, income lost by funding a deposit rather than saving, spending on household maintenance and repair and insurance costs into buying costs.

It is based on data from Halifax’s own database, as well as figures from Birmingham Midshires, the Bank of England and the Office for National Statistics.

The research shows that home buying costs have fallen by more than a quarter, or £328, since 2008, driven by a fall in the average monthly mortgage rate from 5.75% to 3.63%, as well as a drop in house prices.

In 2008, the average cost of buying was 29% higher than the cost of renting.

And between 2010 and 2011, buying costs have fallen by 5% while renting costs have risen by 5%.

Buying a home was more cost-effective than renting in 11 out of the 12 UK regions in December 2011, with Wales being the only region where renting remains cheaper than buying.

Martin Ellis, housing economist at Halifax, says: “The affordability gains for buyers relative to renters in the last three years have been significant. The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates.

“At the same time, rents have risen due to strong demand for rented accommodation.”

But he adds that despite this, the number of purchasers has continued to fall due to ongoing challenges in raising a deposit and uncertainty over the economy and housing market.