Amidst the emergence of some new entrants and a degree of renewed confidence returning to the buy-to-let sector, TMA’s November Distribution Indicator focused on if this positivity had translated into an increase in enquiries for DA intermediaries.
Results from the survey found that 47% had in fact experienced an increase in buy-to-let enquiries over the last three months. One in three (33%) noted the return of some renewed activity but said that enquiry levels has not significantly increased while 20% refuting that any positivity had converted into any increase at all.
Reflecting on current market conditions when compared to those at the end of 2010, 54% said that they were definitely more confident in regards to the future of the buy-to-let sector than at the same time last year. 32% were slightly more confident, whilst only 14% suggested they were still not confident of current market conditions being any stronger moving forward.
In another section of TMA’s monthly Distribution Indicator when posed the question; with the average age of home ownership rising, do you think potential buyers are turning to the rental market through choice rather than necessity, 60% stated they didn’t think that this was the case. But thanks to a less than overwhelming majority, 40% of respondents said they thought more people were making this lifestyle choice rather than because of obvious funding and affordability issues.
The TMA Distribution Indicator is part of a strategic gathering of feedback and views in regard to current market conditions undertaken by the TMA mortgage desk. A cross section of extensive interviews takes place over the course of a month and the responses are gathered to highlight any potential fears, opening or developments in the market which TMA will look to address in the future.
Phil Whitehouse, head of TMA, said: “Buy-to-let remains a key sector in the marketplace and after a few torrid years it has been good to see it rebuild some solid foundations which now appear to be translating into increased enquiry levels for the intermediary market. The emergence and return of some specialist lenders has certainly worked to instil much needed confidence in this sector, as reflected in the way respondents are more positive looking forward than they were this time last year.
“In addition lenders such as The Mortgage Works and BM Solutions continue to illustrate their commitment to the intermediary market but it’s clear that the buy-to-let market still has some way to go. It’s important that any progression should not be rushed and be allowed to grow organically. However, in a market where access to home-ownership is still proving extremely difficult, the private rental sector will continue to benefit from high levels of demand for good quality housing thus ensuring more opportunities will continue to arise for intermediaries.”