There has been a big leap in buy-to-let mortgage lending, as the investor market appeared to shrug off impending tax changes which are set to hit landlords’ profitability hard.

Buy-to-let lending is now the highest since 2007, representing 18% of all new mortgage lending in September.

Trade body the Council of Mortgage Lenders says that buy-to-let remortgaging rose 62% on an annual basis in September, while buy-to-let lending for house purchase was up 36% on last year.

In September, there were 24,100 buy-to-let loans, compared with 22,200 in August and 17,700 in September last year.

Of these, 11,300 loans were for buy-to-let house purchase.

The CML also reported a 10% annual rise in lending to first-time buyers – up also 2% on a monthly basis.

Lending to home movers was down 4% month on month, but up 15% annually.

Altogether, there were 62,300 loans in September for home-owner house purchase – exactly the same figure as in August, but up from 57,600 house purchase loans in September last year.

Roughly half, 28,600, were to first-time buyers, an increase from 27,500 in August and up from 26,300 in September last year.

Separately, LSL valuations firm e.surv is predicting the highest October lending levels for the last seven years, with house purchase approvals standing at 72,409.  Based on its own activity, the firm is forecasting both a monthly and annual rise in approvals – up 5.1% on September, and 21.9% up on October last year.