No decrease in BTL purchases expected after stamp duty holiday

Mortgage advisers are expecting no decrease in buy-to-let (BTL) purchase activity once the stamp duty holiday comes to an end, according to new research by Pepper Money.

In a recent survey of advisers active in the BTL market, Pepper Money found that 65% said they expect no decrease in purchase activity once the stamp duty holiday ends on 31 March.

Another 61% of advisers are expecting business levels to remain the same, while 4% are anticipating an increase.

According to the research, Pepper Money also found that 69% of advisers expect an increase in BTL remortgage business this year, with thousands of five-year fixed rates due to expire.

Pepper Money sales director, Paul Adams said that despite a challenging economic backdrop, BTL 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,” Adams commented.

“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 BTL 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% of advisers say service has become a bigger factor in their recommendations in the last six months, while 43% expect to encounter more landlords with adverse credit.

“Our underwriters are able to take a pragmatic approach to landlords with adverse credit – so we look forward to helping more advisers to help their BTL customers this year.”

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