The buy-to-let sector is getting more focus from lenders and brokers as a result of the cooling effect the Mortgage Market Review is having on regulated mortgages due to its increased affordability requirements.
But speaking at the forum Phil Rickards, head of BM Solutions, said there will be a natural inhibitor to the level of business available for brokers to write allowing lenders to keep up.
“There is a shortage of property supply which will restrict the amount of transactions generally,” he said.
“A broker can only write the amount of business which is out there to be written – there may be demand but without the properties available to buy some of that demand will remain pent up.”
Rickards said the expected uplift in buy-to-let business is “something BM Solutions has had a watchful eye on”.
He said the service problems BM experienced last year had been dealt with and in the last couple of months the lender had made further enhancements to ensure a continued strong service for its brokers.
The market is expected to continue on its path of steady growth with Rickards pointing to the remortgage market as one area to watch.
Figures from the Council of Mortgage Lenders showed a 42% year-on-year increase in gross buy-to-let remortgage lending in quarter four.
Last year gross buy-to-let lending rose by 32% year-on-year to £20.7bn.
During The Buy to Let Market Forum panel debate speakers predicted that this year that figure would rise to around £25bn.
But after this initial surge the market would take another five years to expand by a further £5bn of lending.
Rickards said that while these predictions did not take the market back to its peak they represented a sustainable market in much better health.
