View more on these topics

Intermediaries’ outlook for next year is positive, says Mortgage Trust

Mortgage Trusts December buy-to-let Intermediary Forecast reveals that according to intermediaries the outlook for 2006 is overwhelmingly positive.

Some 64% of respondents expect to write more business over the whole of 2006 than in 2005 and 29% expect to write significantly more.

The outlook for 2006 is good even in comparison with the increase in business volumes experienced in 2005. 43% of intermediaries surveyed feel that buy-to-let business volumes were at least 10% higher in 2005 than in 2004, and 7% say that they had experienced volume growth of above 50%.

Rising levels of confidence in the housing market combined with increasing tenant demand are expected to be the most significant influences on increases in business volumes in 2006.

Growth in tenant demand is being driven by rising house prices, and 64% of intermediaries expect house prices to rise at a steady rate over the course of 2006. 71% of intermediaries expect rents charged to increase in the next year, which can be partially explained by the predicted rise in tenant demand.

Nicola Severn, marketing manager at Mortgage Trust, says: This survey shows that the majority of intermediaries have high expectations for the buy-to-let market in 2006.

“They have highlighted a combination of long term influences, such as rising tenant demand and housing market confidence, which will contribute to the health of the sector in the coming year. Buy-to-let looks set to continue to grow, at a level at least equivalent to that experienced over the course of 2005.”

Glen Morris, director at Berkley Consultants, agrees that the outlook for the buy-to-let market is positive.

He adds: In 2006 we expect our professional landlords to continue to refinance to take advantage of the best mortgage deals, and to gear up so that they are able to add to their portfolios.

Throughout 2005 our investors maintained a business-like approach to their investments, taking a pragmatic view in relation to risk, diversifying portfolios to include a variety of geographic locations, and opting for flexible products that allow overpayments and payment holidays in case of void periods.

“We expect this approach to be maintained through 2006 and into the future.


MS to help brokers as they prepare for HIPs

Intermediaries are to get a helping hand in the intricate world of Home Information Packs thanks to eConveyancer’s Alan Dring and Mortgage Strategy. Dring, sales director at eConveyancer, will be writing a weekly article on the development of HIPs in the magazine and readers will be invited to forward their queries and observations to him […]

Societies should have a big future

With building societies’ margins under pressure, greater scale and more diversification will be needed if the sector is to survive to serve future generations, says Graeme Johnston

This Turner is certainly no masterpiece

Turner? I thought he was a landscape painter. Call me dim but I couldn’t initially understand why everyone was making such a fuss over an artist who died in 1851 or his pension – other than the fact that he didn’t get one.

Ipswich launches B2L discount mortgage

Ipswich has launched a discount buy-to-let mortgage with no early repayment charge to coincide with the introduction of its online case tracking service for intermediaries on December 12. The product, which is discounted by 1.5% until February 29 2008 and has an initial rate of 4.90%, allows landlords to move to any other product during […]

Infographic - thumbnail

Infographic — health cash plans 2014

Health Shield has strengthened its position in the cash plan market, according to the latest Laing & Buisson report, increasing its market share by income from £27m in 2012 to £29m in 2013. The Health Cover UK Market Report 2014 revealed that the non-profit-making Friendly Society was the only provider in the top four to have increased its market share by income over the past year. Health Shield was also the only cash plan provider in the top four to have increased its market share by income every year for the previous five years. This infographic presents the figures.


News and expert analysis straight to your inbox

Sign up