Mortgage brokers are confident in the buy-to-let and new build markets, according to NatWest Intermediary Solutions.
A study by the lender of 500 mortgage intermediaries reveals that 58% had seen an increase in buy-to-let business over the last three months. Just one in 20 had experienced a decline and more than a quarter (27%) reported that it had stayed the same.
Looking ahead, over half (54%) believe that the market will expand in the next six months with only 4% expecting to do less business. A third (32%) forecast a stable buy-to-let market.
The majority (57%) of brokers are optimistic about the new build sector this year. A quarter are pessimistic and one in six (17%) are unsure.
Of those that have witnessed a new build development in their area recently, over half (57%) think that they will experience more business this year than last year. A fifth (21%) are not sure and 16% expect to do less.
A third of all brokers (32%) reported that there weren’t any new build developments in their area.
Graham Felstead, Head of NatWest Intermediary Solutions, says: “The buy-to-let and new build sectors have both been touted as growth areas for 2015, and this sentiment has been echoed by the optimism shown by brokers in our survey.
“We have an appetite to grow our presence in both of these areas of the mortgage market and have recently refreshed our new build proposition to offer a more attractive approach to builder’s incentives.”
He continues: “The buy-to-let market is one where we have made great strides in the last couple of years. We have focused specifically on non-professional landlords with small portfolios – an area of the market where there has been significant growth and one that is expected to continue to be buoyant, as more people turn to property as a viable investment alternative to traditional pension arrangements.”