“Solid rebound” in buy to let expected to stay on track, say brokers

Four out of 10 mortgage brokers expect more buy to let business in the coming 12 months, according to a Paragon Bank survey. 

Its latest confidence tracker - quizzing over 200 intermediaries - shows 41 per cent saying they expect more buy to let business.

This is only slightly down on the 43 per cent recorded in the first quarter of 2020 and well up on the 38 per cent from the final quarter of last year.

On top of that, just over another quarter of intermediaries expect buy to let mortgage levels to remain stable.

“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” suggest Richard Rowntree, Paragon’s managing director of mortgages.

“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.”