B2L confounds the sceptics

Despite doom mongers predicting an imminent bust in buy-to-let, research reveals the sector is continuing to do well and confidence is booming.

Mortgage Trust says increasing lender competition is helping to fuel the buy-to-let market.

Its October buy-to-let intermediary forecast reveals that 50% of buy-to-let intermediaries cite the increased availability of more innovative and competitive mortgage products as a key factor in the generation of business volumes.

For the first time in seven months the percentage of business expected by intermediaries from first-time landlords has risen. The rise, to 17%, shows intermediaries are confident about future property investment.

Nicola Severn, marketing manager at Mortgage Trust, says: “The October buy-to-let intermediary forecast shows intermediaries welcome further product development and believe healthy competition in the market serves to boost the sector.”

The Money Centre has found similar results in its study of landlords. It found that on average, landlords are planning to purchase three properties in the next 12 months, compared with just two in the same survey last year.

The outlook for the property market in general is also positive. An overwhelming 84% of landlords are confident property values and rents will rise, compared with 62% last year, while the remaining 16% think property values and rent will remain the same. Not one of those questioned predict value or rent decreases this year.

Mark Alexander, managing director of The Money Centre, says: “The market has stabilised this year whereas last year there was an air of uncertainty with landlords looking for security with flexible products.”