Interest in buy-to-let mortgages grows in 2020

During the first lockdown in 2020, the buy-to-let market slowed significantly as physical valuations stopped and lenders diverted operations to processing payment holidays. This was compounded further as all businesses involved in the buy-to-let chain wrestled with new home working practices.

The appetite for investors in buy-to-let remained healthy, with reported increases in the number of buy-to-let limited companies being established and a significant year-on-year increase in visitors to the Moneyfacts.co.uk buy-to-let charts.

Investors may have found comfort investing in property, as the return on cash savings fell and the stock markets remained volatile. The stamp duty holiday would have also incentivised some investors to purchase their first or another buy-to-let property.

Pepper Money UK, a specialist mortgage and buy-to-let lender is looking to hear from mortgage brokers about their expectations and views of the buy-to-let market in 2021. The lender is interested to hear views about the future of buy-to-let after a year of unprecedented events.
Paul Adams, Sales Director at Pepper Money, says: “One fifth of all households currently live in privately rented accommodation and so a healthy Buy to Let sector is important, not just for investors, but also for renters. Fortunately, the market has demonstrated fantastic resilience in recent months. Data analysis by estate agent Hamptons has found that a total of 41,700 new Buy to Let limited companies were set up in 2020 – an increase of 23% on 2019. And the number of Buy to Let mortgages available at higher LTVs is growing, according to Moneyfacts. All the signs are that 2021 is going to provide advisers with an opportunity to grow their Buy to Let business, so we wanted to understand more about this opportunity. This survey will help us to find out what types of Buy to Let activity advisers are seeing now, what they expect in the future and what’s important to them when they make a Buy to Let recommendation to a customer.”

Brokers can take part in the survey online. The survey should take no more than ten minutes to complete.