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Buy To Let Mortgages Rise By 3.1 Percent
Intermediaries recorded an increase in buy-to-let mortgage applications in the third quarter of 2011, according to the latest research from buy-to-let lender Paragon Mortgages.
Buy-to-let deals accounted for 24.3% of mortgages processed by intermediaries in Q3 of 2011, up from 20% three months ago and is the highest proportion since Paragon started collating the data in the first quarter of 2007.
Consequently, residential owner-occupier mortgages accounted for 66.6% of intermediary business, down from 72.2% in the previous quarter.
On average, intermediaries recorded a 3.1% increase in buy-to-let business during the quarter, which is positive news for the private rented sector. Overall, 43% of intermediaries recorded increasing buy-to-let business levels, compared to 7% who said business levels fell.
Elsewhere, 58% of respondents said the availability of buy-to-let finance improved in the third quarter, while 31% said it stayed the same.
John Heron, managing director at Paragon, says: “It is positive to see that buy-to-let accounted for a growing percentage of intermediaries’ overall business levels during Q3. Given the pressures on the private rented sector, it is important that landlords continue to be active purchasers and develop their portfolios.”
Professional landlords play a pivotal role in the private rented sector, with just 11% of landlords owning 73% of the property according to Government statistics.
Heron said: “There are plenty of opportunities for intermediaries to develop further business in this market but more needs to be done to deliver products and advice to larger scale investors. Cultivating a relationship with professional landlords can generate repeat business for intermediaries as well as ancillary sales.”
