Buy-to-let lending to rise in 2011, says Paragon

Gross buy-to-let lending is set to rise steadily during 2011, according to the Paragon Group.

The buy-to-let mortgage specialist believes the market will increase 15 per cent next year.

According to chief executive at the company Nigel Terrington, this year has provided a solid base for the buy-to-let market that can be build upon over the next year.

"Gross lending will rise steadily during 2011 and, in the absence of any major economic downturn, should finish between 10 per cent to 15 per cent higher than 2010 levels. However, it will be some time before we see levels of lending that are consistent with 'normal' market conditions," he said.

Mr Terrington said he expects strong levels of tenant demand to continue into next year, particularly as a result of the government's planned changes to social housing.

In October, the company revealed that there was no slowdown in tenant demand being seen with four out of ten landlords reporting strengthening levels of it in Q3.

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2010-12-21 16:29:18 © Moneyextra.com