Last week’s interest rate cut has warmed the BTL market but there will be few new landlords entering the market according to Mortgage trust research.
In its August 2005 analysis, 43.4 per cent of intermediaries believe BTL business levels will increased slightly while 34 per cent think it will remain at the same level.
BTL intermediaries are divided about the outlook for the housing market as a whole, with 22.6 per cent predicting slight rises in house prices and the same number predicting falls.
The main proportion of business is still expected to come from remortgaging with intermediaries expecting it will make up to 45.72 per cent of their business over the next three months. Only 15.96 per cent of business is predicted to come from first time landlords.
Mortgage Trust marketing manager Nicola Severn says: “August’s interest rate cut was predicted by intermediaries and adds to a sense of cautious optimism in the BTL sector. However, although intermediaries are positive about existing landlords continuing to invest, they do not expect an uplift in the number of new entrants.”