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Broker BTL confidence continues to grow, reveals Paragon

Some 53% of mortgage intermediaries surveyed in Q2 2021 expect BTL business to grow over the next 12 months, despite the tapering of the stamp duty holiday, revealed Paragon Bank’s latest FACT report.

This compares to 50% in the first quarter of the year, while the proportion expecting declining levels of BTL business remained consistent at 10%.

Brokers also reported significant demand for BTL during this period, with 42% of intermediaries stating demand was ‘strong’ and 8% ‘very strong’ — an increase to 26% in the corresponding period last year at the height of the pandemic. 

Conversely, just 10% of respondents reported BTL demand as weak during Q2 2021 compared to 30% during the second quarter of 2020. 

Overall, broker confidence generally was high, with 91% stating that they were confident about the outlook for their business over next 12 months. 

This was particularly prevalent for those with high levels of BTL business, with the figure hitting 97% for this cohort.

Moray Hulme, mortgages director at Paragon (pictured above), said: “These figures suggest that the strong levels of BTL business witnessed over the last six to nine months wasn’t just as a result of the stamp duty stimulus, but down to more fundamental shifts in where and how people want to live. 

“We still expect to see business levels moderate as the stamp duty holiday ends, but landlords are seeing plenty of opportunities to expand their portfolios to meet excellent levels of tenant demand and changes in the type of property people now want to rent.”

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