Almost half of brokers (41%) of brokers expect to write more buy-to-let business in the next 12 months, Paragon Bank’s Financial Adviser Confidence Tracker (FACT) index has revealed,
These latest survey findings are a drop from the 43% of advisers who predicted more buy-to-let business in the first quarter of 2020, but up on the 38% recorded in the final quarter of 2019.
Of the 200 intermediaries surveyed, just over a quarter (28%) expect buy-to-let mortgage levels to remain stable.
Richard Rowntree, managing director of mortgages at Paragon Bank, said: “Despite the buffeting that coronavirus has caused to the mortgage market, and housing sector more broadly, there is clearly still strong and stable demand for buy-to-let via intermediaries, which is reflected in the results of this survey.
“We have seen a solid rebound in buy-to-let business since the housing market reopened in mid-May and landlords have been unlocking capital to invest and grow their portfolios further. We expect to see increased demand for rented property underpinning growth in the coming months as people delay house purchase or cannot obtain a mortgage with the removal of higher loan to value products in the residential market.”
Of those forecasting an increase in buy-to-let business, confidence was stronger amongst directly authorised firms (46%) than appointed representatives (36%) according to the FACT index. Confidence was also stronger in sole adviser organisations (47%) than firms with between two to three advisers (34%) and four or more advisers (37%).
Rowntree added: “Coronavirus has had a clear and damaging impact on the economy and the UK as a whole, but the long-term fundamentals underpinning demand for buy-to-let remain unchanged. The UK has a growing population with increasing numbers of households and the private rented sector will provide a good quality home for many of them.”
This post has originally been featured in Property Wire.