A leading buy to let mortgage provider says the professional landlord with multiple properties is increasingly becoming the backbone of its lending - another sign that amateur investors are no longer the force they were.
Paragon, the specialist banking group, has reported a 16 per cent increase in first half mortgage lending to £834m, up from £721m in the same period last year.
Buy to let business dominated new mortgage lending, up by 17 per cent to £788m, as the lender shifts its products towards professional landlords with larger portfolios.
In a statement, Paragon says this group is “becoming increasingly important to the supply of private rented property in the UK.”
Paragon’s latest trading statement also says that the proportion of ‘complex’ buy to let completions – comprising customers operating through corporate structures or running large portfolios - increased from 72 per cent to 88 per cent of the total during the first half and represented 92 per cent of the pipeline of future business at the end of March.
“Complexity around the private rented sector resulting from fiscal changes and increased regulation has resulted in a shift in balance with professional landlords providing a greater proportion of the supply of rented homes” says John Heron, Managing Director of Mortgages at Paragon.