Despite the stamp duty set to come to an end, mortgage brokers aren’t expecting any fall in buy-to-let activity afterwards, according to research by Pepper Money.
In a recent survey of advisers active in buy-to-let, the specialist lender found that 65% expect no decrease in purchase activity once the SDLT holiday ends, with 61% expecting business levels to remain the same and 4% anticipating an increase.
According to the research, 69% of advisers expect an increase in buy-to-let remortgage business this year as many thousands of five-year fixed rates are due to expire.
Paul Adams, sales director at Pepper Money, said: “Set against a challenging economic backdrop, buy-to-let could be in for a booming year. Demand for rental property continues to be high, and landlords are responding to this demand by returning to the market and growing their portfolios. According to our research, this purchase activity is unlikely to subside once the stamp duty holiday ends, and with a spike in the number of landlords’ fixed rate deals due to come to an end, advisers can expect to get involved in a lot of buy-to-let business.
“When it comes to choosing the right lender for their landlord customers, criteria and service are going to be key considerations. Indeed, our research has found that 82% of advisers say service has become a bigger factor in their recommendations in the last six months, while 43% expect to encounter more landlords with adverse credit. At Pepper Money, our underwriters are able to take a pragmatic approach to landlords with adverse credit – so we look forward to helping more advisers to help their buy-to-let customers this year.”