Positive news should be welcomed particularly in an economic environment that remains uncertain.
Recently there appears to be a growing movement towards the negative as predictions for a further slowdown in UK economic growth take hold.
Which is why it is pleasing to focus on the current buy-to-let market and analyse some recent announcements that show a strengthening sector fuelled by strong demand.
Advisers will be aware that the number of lenders and products in buy-to-let is increasing. Up to 67 lenders now offer products according to Moneyfacts.
This added competition is starting to have an effect on pricing. As long as providers maintain responsibility in terms of deposit levels and rental cover, this is good news.
We may also be on the verge of a milestone for buy-to-let lending which came with the recent announcement of Paragon’s prospective summer securitisation.
It is working on the issue of £250m in bonds that will be the first time a package of buy-to-let loans has been sold since the wholesale markets effectively shut post credit crunch.
There have been securitisations since, but for residential loans, and they were few and far between.
The focus will remain on quality but this buy-to-let loan deal should hopefully show the way for future wholesale activity. This can only help develop an already strengthening buy-to-let market.