Paragon: Industry forecast a pick-up in the buy-to-let market

Michael Lloyd

November 11, 2019

Intermediaries forecast a 1% increase in buy-to-let business in the next 12 months, Paragon’s latest Financial Adviser Confidence Tracking (FACT) report has revealed.

Buy-to-let business reached 17% of business in Q3 2019, a quarterly increase of 2%.

The average number of mortgages introduced per office was 21.9 in Q3 which is the lowest figure since Q2 2017.

John Heron (pictured), director of mortgages at Paragon, said: “After a number of years of instability and negative sentiment in the buy-to-let market, it’s encouraging to see mortgage intermediaries forecasting increased buy-to-let business over the next 12 months.

“However, the market overall has been constrained by the current Brexit uncertainty and it remains difficult to see exactly when this will end.”

First-time landlords grew to 13% of buy-to-let business completed in Q3, whilst remortgaging rose from 55%.

The proportion of landlords raising finance for portfolio extension was smaller, accounting to 20%.

In regards to the wider market, remortgaging was the principal type of borrowing amongst homeowners accounting for almost half (46%) of mortgages in Q3.

First-time buyers accounted for 16% of new business in Q3 which is a decline of 2% from the previous quarter.

In regards to the wider marker, intermediaries predict overall business to rise by 2% in the next 12 months.

The FACT Index score, designed to establish advisers’ overall confidence in the mortgage market, was 97.8 for Q3.

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