That's nearly double the 11 per cent of the mortgage market that CML H2 2006 figures showed, according to the research, which indicates that, despite two rate rises since the beginning of the year, Q1 2007 has seen continued growth in the buy-to-let market.
Behind prime residential mortgages, prime buy-to-let is now the largest generator of business for intermediaries, making up a greater portion of the market than all other niche sectors, even self-cert or non-conforming residential.
The research, in which over 200 financial advisers were questioned, also shows that there is little room in the market for non-conforming buy-to-let mortgages, which make up just 1.1 per cent of the mortgage market.
John Heron, managing director of Paragon, commented: “Buy-to-let is the biggest niche sector in the UK mortgage market, and our research shows that it is continuing to grow. As the sector expands, those financial advisers that have expertise in the area are, in turn, benefiting from its success.
“Data points towards the fact that in the face of today’s financial environment, landlords are continuing to invest in properties and are enjoying increased tenant demand and higher rental incomes. The proportion of broker business coming through buy-to-let is set to continue its upward trend.
“Non-conforming buy-to-let still makes up a reassuringly small proportion of the UK mortgage market. Buy-to-let continues to be a popular investment option and a largely risk averse and mainstream market.”
