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Half of brokers expect more B2L business this year

More than half of brokers say the expect to complete more buy-to-let business this year than last, according to a survey by Paragon Mortgages.

The poll reveals that 53% of brokers believe they will do more buy-to-let business in 2012, with just 3% expecting to do less.

Of those that said they expected buy-to-let business to increase, 19% are predicting a rise in business levels of 10% or more.

When asked about the economic factors which will impact on the mortgage market in the next 12 months, 62% said they expect unemployment to rise, while 42% think GDP growth will fall.

John Heron, managing director of Paragon Mortgages, says: “2012 is set to be another challenging year for the buy-to-let and general mortgage market as we continue to feel the impact of the eurozone crisis and wider economic factors.

“However, it’s positive to see the level of optimism among intermediaries and the fact that more than half expect to increase their level of buy-to-let business throughout the course of the year.”  

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  • Ian 17th January 2012 at 10:35 pm

    Home ownership is predicted to fall from 71% in 2012 to 61% by 2020, the private rental sector is predicted to increase from 29% to 39% in the same period.

    We can see from lenders relaxing buy to let criteria and some lenders now re entering the buy to let market that this is where mortgage business will be written in the next few years.

    With the average age of a first time buyer now in the early 40’s and the average house price at 8 times average salary we are going to see fundamental longstanding changes in the property market.

    The european housing system of a lifetime of renting is likely to grow in the UK as wages fail to keep up with house prices.