Half of brokers say BTL sales have risen
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A total of 47% of brokers believe that buy-to-let enquiries have risen over the last three months, The Mortgage Alliance November Distribution Indicator shows.
Amid the emergence of some new entrants and a degree of renewed confidence returning to the buy-to-let sector, TMA’s November Distribution Indicator focused on if this positivity had translated into an increase in enquiries for DA intermediaries.
One in three noted the return of some renewed activity but said that enquiry levels has not significantly increased while 20% refuting that any positivity had converted into any increase at all.
Reflecting on current market conditions when compared to those at the end of 2010, 54% say that they were definitely more confident in regards to the future of the buy-to-let sector than at the same time last year.
A total of 32% were slightly more confident, whilst only 14% suggested they were still not confident of current market conditions being any stronger moving forward.
Four in 10 brokers also felt that potential buyers were turning to the rental market out of choice rather than necessity.
Phil Whitehouse, head of TMA, says: “Buy-to-let remains a key sector in the marketplace and after a few torrid years it has been good to see it rebuild some solid foundations which now appear to be translating into increased enquiry levels for the intermediary market.
“The emergence and return of some specialist lenders has certainly worked to instill much needed confidence in this sector, as reflected in the way respondents are more positive looking forward than they were this time last year.
“In addition lenders such as The Mortgage Works and BM Solutions continue to illustrate their commitment to the intermediary market but it’s clear that the BTL market still has some way to go. It’s important that any progression should not be rushed and be allowed to grow organically.
“However, in a market where access to home-ownership is still proving extremely difficult, the private rental sector will continue to benefit from high levels of demand for good quality housing thus ensuring more opportunities will continue to arise for intermediaries.”
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