A total of 16.3 per cent of intermediaries believe they will write significantly more business over the next three months compared to the December survey (9.7 per cent). 23.3 per cent of intermediaries believe buy-to-let business levels will remain the same over the period.
Intermediaries predict the majority of this increased business volume will be generated through loans to landlords who are expanding their portfolios, with these loans accounting for a projected 45.2 per cent of business.
Canny investors seeking to remortgage their existing buy-to-let properties are anticipated to make up 37.7 per cent of business.
Intermediaries still expect first-time landlords to account for a minority (17 per cent) of the market up from 15.3 per cent in December, again reflecting improved confidence in the market.
Chris Tonkin at ABC Buy-to-Let commented: “We have seen applications and enquiries from professional investors, particularly those looking to remortgage, reach levels significantly above expectation, due in part to an expectation that interest rates have reached their peak and lenders will be cutting rates.
“There is also a quiet confidence that the pension reforms planned for April 2006 will lead to medium-term growth in capital value.”
Nicola Severn, marketing manager at Mortgage Trust, added: “Stable house prices and low interest rates are attracting professional landlords and a number of attractive mortgage products which have recently been introduced to the market are set to boost the sector further.”
