A new study suggests that the end of the stamp duty holiday should not significantly dent the purchasing pattens of buy to let investors.
Mortgage advisers’ opinions canvassed by Pepper Money found that 65 per cent said they expect no decrease in purchase activity once the SDLT holiday ends - of those, 61 per cent expect business levels to remain the same and four per cent actually anticipate an increase.
According to the research, 69 per cent 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, says: “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 per cent of advisers say service has become a bigger factor in their recommendations in the last six months, while 43 per cent expect to encounter more landlords with adverse credit. “