A survey from Paragon Bank has found that broker confidence in the buy-to-let market dipped slightly in the second quarter of the year, with four in 10 expecting to write more business in the next 12 months than in the last.
Paragon’s Financial Adviser Confidence Tracker surveyed more than 200 intermediaries and found that 41 per cent expected more buy-to-let business in the next 12 months, than in the previous 12 months, down from 43 per cent in the first quarter of 2020 but up on the 38 per cent recorded in the final quarter last year.
Of those intermediaries forecasting an increase in buy-to-let business, confidence was stronger amongst directly authorised firms (46 per cent) than appointed representatives (36 per cent).
Confidence was also firmer in sole adviser organisations (47 per cent) than firms with between two to three advisers (34 per cent) and four or more advisers (37 per cent).
The number of intermediaries expecting levels of transactions in the buy-to-let market to remain stable stood at 28 per cent.
Paragon Bank managing director mortgages Richard Rowntree says: “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.
“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.”
