Current demand in the market is also up compared with June 2020 when around a quarter of 200 brokers questioned expected an uplift.
It’s also a significant increase when compared to the same time last year, when only 5.5 per cent of brokers felt demand was either ‘strong’ or ‘very strong’.
The increasing confidence supports the idea that the market is recovering strongly following the impact of the Covid-19 pandemic, Paragon said.
Advisers ranked changes to stamp duty as having had the biggest impact on the market, followed by planning reforms and the short-term home building fund extension.
However, some brokers expect to see a dip in mortgage activity following the end of the stamp duty holiday in March 2021.
Richard Rowntree, Paragon managing director for mortgages said: “Our latest FACT Index has come at a really interesting time because it highlights how the market is strong at the moment and looks set to continue to perform well over the coming months.
“Brokers feel that a significant driver of this is the stamp duty holiday so we may see a different landscape once the initiative comes to an end in March next year.
“History has shown that we can see peaks and troughs in activity in the lead up to and following important policy changes and these are just indicative of the dynamic nature of the market. I feel that demand will ease off to more typical levels, so when we look at it over a longer term, we will see a return to stability.”