Intermediaries expect to see more buy-to-let lending in 2012
Posted by Lucy Wooldridge
Greater levels of mortgage lending could make it easier for landlords to invest in buy-to-let properties this year.
According to a survey by lender Paragon, more than half of mortgage intermediaries (53 per cent) expect to do more buy-to-let business in 2012 than they did last year.
Just three per cent of those questioned said they believe they will complete less buy-to-let business over the next 12 months and of those who are predicting an increase, 19 per cent said that they expect levels to rise ten per cent or more.
The optimistic outlook for the buy-to-let sector comes despite a number of challenges facing the economy which have held back lending for the owner occupier sector in recent times.
"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," said John Heron, managing director of Paragon Mortgages.
"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."
Intermediaries were also asked about economic and social trends which are likely to impact the buy-to-let sector over the coming year.
Almost two-thirds (62 per cent) said that employment would decrease in 2012, while the second most prolific factor was that of the UK's gross domestic product - with 42 per cent saying they expect this to decrease.
It follows the recent news that Platform, the Co-operative Bank's intermediary mortgage provider, that it has committed to increasing its buy-to-let lending by a third in 2012.
The company said that it has ring-fenced £600 million to be lent to landlords throughout the year to invest in new buy-to-let properties.
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