A growing number of private landlords are successfully adjusting their investment strategies to mitigate the impact of changes in tax and regulatory policy towards the buy-to-let sector, new mortgage lending figures suggest.
Paragon Mortgages has released its first-half results for the six months ended 31 March 2017, which shows that it has more than doubled its new buy-to-let lending to £742.3m.
New mortgage lending was up 65% to £556.2m as interest from portfolio landlords improved, owed in part to a rise in the number of applications received from landlords with specialist needs.
Some 67% of pipeline applications came from landlords with larger and more complex property portfolios, while more than a quarter - 26.5% - of pipeline applications came from landlords operating in limited company structures.
John Heron, managing director of Paragon Mortgages, said: “The buy-to-let market is changing as a result of the developments in tax and regulatory policy towards the sector.
“We have seen greater polarisation in recent months in the market as professional landlords have shaped their investment strategies to mitigate the impact of these changes.
“With many years’ experience in delivering the more specialist products and services that these landlords require, Paragon is clearly in a strong position to benefit from this significant realignment in the market.”