A rising number of buy-to-let landlords are managing to successfully adjust to the differing demands of the sector, according to the most recent report released by Paragon Mortgages.
The report suggests that many landlords are changing their strategies in order to mitigate the impact of the changes in both tax and regulation aimed at the buy-to-let sector.
Paragon Mortgages’ report, containing its six-month results ending on 31st March, shows that new buy-to-let lending rose to £742.3m – an increase of more than double.
New mortgage lending was up by 65% to reach £556.2m, with interest from portfolio landlords improving. This can be partly attributed to a rise in the number of applications received from those landlords with more specialist requirements.
67% of applications came from buy-to-let investors with bigger, more complex portfolios. 26.5% of applications came from limited company landlords.
John Heron, managing director of Paragon Mortgages said: ‘The buy-to-let market is changing as a result of the developments in tax and regulatory policy towards the sector.’
‘We have seen greater polarisation in recent months in the market as professional landlords have shaped their investment strategies to mitigate the impact of these changes,’ Mr Heron added.