Buy-to-let investors continue to dominate the UK housing market, as demand for rental properties continues to remain stable, according to latest data from UK Finance.

On a seasonally-adjusted basis, gross buy-to-let lending totalled £9.3 billion, up 11 per cent on the second quarter and four per cent on the second quarter of 2016. This equated to 60,000 mortgages, up eight per cent on the previous quarter and 6 per cent year-on-year.

UK Finance is a new trade association, which represents the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. Its data is an indicator of the health of the UK property market.

In September, buy-to-let activity continued to be driven by remortgaging, which accounted for more than two-thirds of total lending. Buy-to-let house purchase and remortgaging activity in September remained at a similar level seen since the change in stamp duty on second properties introduced in April last year.

First-time buyers borrowed £5.1 billion, down 11 per cent on the previous month but 4 per cent higher than in September 2016. This equated to 31,100 loans, down 10 per cent month-on-month and 1 per cent year-on-year.