According to a Paragon Bank survey, 4 out of 10 mortgage brokers expect to see increased levels of buy-to-let business in the upcoming 12 months.
The survey involved over 200 intermediaries, with 41 per cent of respondents stating they expect more buy to let business.
This figure is a slight decrease from the 43 per cent recorded in the first quarter of 2020, however well up from the 38 per cent recorded during the final quarter of 2019.
It was also noted that just over another quarter of intermediaries expect buy to let mortgage levels to remain stable in the near future, indicating a steady level of confidence in the industry.
Richard Rowntee, Paragon’s managing director of mortgages, commented:
“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”
“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.”
Rowntree adds: “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.”
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