The Mortgage Alliance (TMA) has claimed that intermediaries are more upbeat about the future of the buy-to-let sector than they were this time last year.
TMA’s May Distribution Indicator revealed 76% of directly authorised intermediaries (DA) were more confident about the future of the buy-to-let sector with 24% suggesting they were still not confident regarding its future.
The survey found that recent new entrants, more products and a degree of renewed confidence returning to the buy-to-let sector were all factors informing broker opinion.
It also found that 65% had experienced an increase in buy-to-let enquiries over the last three months in comparison with 35% who stated that they had not.
The TMA Distribution Indicator is part of a strategic gathering of feedback and views in regard to current market conditions undertaken by the TMA mortgage desk.
In another section of the TMA Distribution Indicator when posed the question ‘with the average age of home ownership rising, do you think potential buyers are turning to the rental market through choice rather than necessity?’ 62% stated they didn’t believe so. 38% of respondents said they thought more people were making this lifestyle choice rather than because of obvious funding and affordability issues.
Meanwhile, 53% agreed with the sentiment that buy-to-let investors with large cash deposits are replacing first-time buyers, as risk-averse lenders are drawn back to the buy-to-let sector and away from the high loan to values. 47% disagreed with the aforementioned sentiments.
Phil Whitehouse , head of TMA, said: “The buy-to-let arena certainly seems to be gaining in momentum with a greater number of products coming onto the market and criteria loosening slightly. This has given rise to a much more upbeat outlook towards this important sector which is reflected in these findings. However