The Council of Mortgage Lenders (CML) has said that buy-to-let insurance policyholders could see a continual high demand across their portfolios as there is no evidence that things are starting to improve.

They predicted that gross mortgage lending would increase form £136billion last year to aropund £140billion in 2011 and then £150billion in 2012.

Meanwhile, the private rented sector has seen a high demand in recent years, as mortgage finance tightened and first time buyers continued to struggle to get on the property ladder.