Paragon’s Financial Adviser Confidence Tracking report, a panel-based survey of intermediaries, found that, on average, buy-to-let accounted for 17% of mortgage intermediary business during the third quarter of the year.

Of the buy-to-let mortgage business handled by intermediaries during the period, 48% was for experienced landlords to expand their portfolio, 16% for firt-timers and 33% were remortgages.

John Heron, Paragon Mortgages managing director, added: “These figures show how important the intermediary market is to experienced buy-to-let landlords, but also the significant proportion of intermediaries’ total business that is made up of buy-to-let. A healthy and vibrant buy-to-let market is vital to both landlords and brokers, and Paragon’s return to new lending will help the sector’s recovery.”

Nigel Terrington, Paragon Group chief executive, said: “Landlord confidence has been building for some time and, as mortgage availability starts to widen, people are taking the opportunity to expand their portfolios.

“The fact that nearly half of buy-to-let business during the period was for experienced landlords to expand their portfolios is encouraging because it is this group of landlords who will drive the growth of the market. With the growth of tenant demand showing little sign of slowing, the UK needs more properties in the private rented sector to help keep pace.”

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