Buy-to-let properties in the UK are currently in high demand and there appears to be plenty of room for further growth, as more investors look to invest in the private rented sector, new research shows.
Four out of ten mortgage brokers expect to write more buy-to-let business in the next 12 months, according to the Paragon Bank’s latest Financial Adviser Confidence Tracker Index.
The survey of more than 200 intermediaries revealed that 41% of advisors currently expect more buy-to-let business, up from 38% from the final quarter of last year.
Richard Rowntree, managing director of mortgages at Paragon Bank, commented: “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.”
Rowntree continued: “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.”