Increasing lender competition boosting buy-to-let

The buy-to-let market is being driven by increasing lender competition, according to new research.

Mortgage Trust reveals that 50 per cent of buy-to-let intermediaries said buy-to-let business volumes was strongly boosted by more innovative and competitive mortgage products.

As a result Mortgage Trust predicts more investment from existing landlords and the possible increase in first-time investors into the sector.

Some 17 per cent of intermediaries expect business from first time landlords, an increase for the first time in seven months.

The results also reveal that brokers think regulatory changes will pose little threat to the market, with only five per cent of respondents expecting forthcoming legislation for Houses in Multiple Occupation to hinder the generation of buy-to-let business.

Nicola Severn, marketing manager at Mortgage Trust, commented: "Mortgage Trust?s October Buy-to-Let Intermediary Forecast shows that intermediaries welcome further product development and believe that healthy competition in the market serves to boost the sector.

"However, they are aware that the long-term future of the market is first and foremost dependent on factors such as steady rental demand and a healthy interest rate environment. Overall, brokers seem clear the market is working well and are confident for the future of the sector."

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