Lenders overwhelmingly expect growth in limited company buy-to-let in the next six months.
The Vantage Point report from Vantage Finance found that nine in 10 (91%) lenders expected growth in limited company buy-to-let, followed by HMO and development finance (81%) and bridging (79%).
Less than half (48%) expected to see an increase of buy-to-let finance, down from four in five (81%) six months ago – reflecting the changes to buy-to-let stamp duty in April.
Lucy Hodge, managing director of Vantage Finance, said: “Vantage Finance is one of the UK’s leading master brokers and as a key mediator between lenders and intermediaries over the last 10 years, we place great value on the relationships we hold with our lender partners. Part of what makes these relationships so effective is a high level of transparency, communication and mutual understanding.
“The previous six months were undoubtedly prosperous for most lenders and given the recent constraints within the market, a short-term dip is expected. Nevertheless, general sentiment remains positive and the impression is that the specialist lending market has much to look forward to.”
With a 3% stamp duty surcharge on buy-to-let coming into force on 1 April a third (31%) of lenders saw the change as the biggest threat to the market.
Three in five (59%) lenders were not anticipating an interest rate rise in the next to years, while three in 10 (30%) didn’t expect one in the ‘foreseeable future’.
