As part of our buy-to-let week we asked brokers whether the amount of buy-to-let business they were completing had risen in the past year.
Almost a quarter (22%) said they had been conducting a lot more business than at this point in 2012 while a further 35% said they had seen a small uptick in case volumes.
However, 27% of respondents said buy-to-let business had been flat in the past year with 16% stating they had witnessed a fall in cases. Some have put this down to increased activity in the first-time buyer market, a change which could see the private rental sector marginalised.
However the Buy to Let Business managing director Ying Tan, taking part in a Mortgage Solutions webchat earlier this week, said demand for rental properties would remain strong.
“If Help to Buy is successful house prices will rise and this will have a negative effect on deposit affordability for first-time buyers in the longer term,” he said.
“Also as prices rise accidental landlords who previously could not sell their properties could look to put them back on the market which in turn brings balance back to the demand and supply, ensuring rents stay strong.
“Equally with house price rises, landlords will become more confident and they have more equity to withdraw. This money can be reinvested ensuring the rental property is of a high standard, thus attracting quality long-term tenants.
“Some tenants prefer the flexibility of renting and do not want to be burdened by debt. Given the choice many will still rent ensuring demand remains high.”
To relive the full Mortgage Solutions webchat with Ying Tan click HERE.
