Specialist lender Paragon remains positive about buy-to-let, despite a tightening of regulations in the market that has included a major crackdown on landlords.
Paragon Mortgages has just posted a 14.2% fall in buy-to-let completions in the year to 30 September, but the lender believes that the market will pick-up significantly as more private rented properties are needed to cater for growing demand from tenants.
“Whilst the buy-to-let market has had a challenging year, we continue to see the potential the sector has to offer,” said John Heron, director of mortgages at Paragon.
Heron acknowledges that this was very much “a year of two halves for buy-to-let” with very strong completion levels being seen in the run up to the stamp duty increase in April followed by a “commensurate reduction in activity levels” across the market from April.
However, Paragon’s pipeline of new business is now gathering momentum with an increase of almost 20% in October, which partly explains why the company remains optimistic about buy-to-let.
He added: “With strong rental demand, there will continue to be a growing need for professional landlords to provide quality, private rental accommodation and, with our 20 years’ experience in the market, we remain very well-positioned to work with these landlords.”