The BTL market is hotting up
Summer is finally here. For how long we don’t know, but let’s enjoy it while it lasts. And it’s not only the weather which is hotting up.
On the back of robust yields, increased product numbers and competitive rates, it’s no surprise to see confidence rising across the BTL sector and there is little to suggest that this is likely to fall anytime soon, despite the tapering of the stamp duty holiday.
This is a sentiment which was highlighted in recent data from Paragon Bank as it revealed that 53% of mortgage intermediaries expect to see an increase in buy-to-let business over the next 12 months. This figure compares to a figure of 50% – when respondents were asked the same question in Q1 2021 – whilst the proportion expecting declining levels of buy-to-let business remained consistent at 10%.
In addition, brokers also reported high levels of demand for buy-to-let during Q2, with 42% of intermediaries stating demand was ‘strong’ and 8% ‘very strong’. That compares to 26% in the corresponding period last year at the height of the pandemic. Just 10% of respondents reported buy-to-let demand as weak during the period, compared with 30% during the second quarter of 2020.
This confidence is certainly evident in our ongoing conversations with a range of landlord clients and lending partners, all of which bodes well for a bright and sunny outlook for the BTL sector in Q3 and beyond.