Brokers are confident of seeing a buy-to-let bounce-back in the next 12 months – a big mood swing from this time last year, the UK’s largest lender has revealed.
Just under half of mortgage intermediaries (49%) expect to write more buy-to-let business in the next 12 months, up from 41% in June, according to Paragon Bank’s quarterly survey.
This is in stark contrast to the same period a year ago when only 17.5% expected to do more business over the coming year.
When asked to describe demand for buy-to-let mortgages, 48% of brokers say it’s ‘strong’ or ‘very strong’, which is up from 26% in June and another big change from the same time last year, when only 5.5% of brokers felt the same way.
While the provider of buy-to-let mortgages’ Financial Adviser Confidence Tracker Index found brokers were positive about the Government’s initiatives to kick-start the economy, particularly the temporary cut in stamp duty, some expect to see a dip in mortgage activity following the end of the scheme next March.
MD Richard Rowntree (left) says the market is strong at the moment and looks set to continue to perform well over the coming months.
But he adds: “History has shown that we can see peaks and troughs in activity in the lead up to and following important policy changes and these are just indicative of the dynamic nature of the market. I feel that demand will ease off to more typical levels, so when we look at it over a longer term, we will see a return to stability.”