Paragon Bank, the specialist lender, has released its latest survey results, showing the percentage of mortgage brokers anticipating higher levels of buy-to-let business over the coming year is at a high not seen since 2014.
Half of all respondents expect higher levels of BTL business over the next 12 months compared to the previous year, and 21% anticipate an increase of at least 10% in transactions.
47% of brokers felt that current demand for BTL mortgages is ‘very strong’ or ‘strong’, hence the increase in positivity. In the final quarter of last year, 41% of brokers expected an increase in business to come in the year ahead.
Those surveyed who are experiencing ‘very weak’ or ‘weak’ demand was just 12%, which is the lowest seen since the pandemic began.
Richard Rowntree, managing director of mortgages at Paragon Bank, commented: “We know that brokers have an excellent grasp of current conditions and can often accurately predict how things will pan out in the coming months so our quarterly Financial Adviser Confidence Tracker survey provides a useful picture of the mortgage market.
“It’s fantastic to see that such high levels of optimism have been recorded following the challenges of the past year or so and that this is being driven by strong levels of demand. The extension of the stamp duty holiday is certainly a driver of that, but it is underpinned by longer-term demand for rental property.”
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Earlier this month, Paragon introduced a range of 80% LTV buy-to-let mortgages, for properties with an energy performance certificate rating of A to C. The lender has extended its standard 75% LTV as an incentive for landlords to invest in energy efficient properties.