But 2015 could be the best year yet for buy-to-let deal is­suance, says Moody’s

Financial Mirror (Cyprus) - - FRONT PAGE -

to the rapid growth of the BTL re­cent years,” she said.

“Re­peat is­suers and new play­ers will sup­port a ro­bust pipeline of BTL RMBS deals this year. Is­suance for this seg­ment has ac­counted for 25.6% of to­tal UK RMBS is­suance so far this year, up from 10.2% in 2014,” she noted. Over the com­ing months, Moody’s fore­casts that re­duced de­mand for BTL prop­er­ties will soften UK house price growth. Moody’s fore­casts that UK house prices will nonethe­less rise by up to 5% in 2015, al­beit at a slower pace than in 2014.

“Notwith­stand­ing the soft­en­ing in house price growth, the risk of an im­me­di­ate house


in price de­crease is lim­ited given the hous­ing short­age and the eco­nomic re­cov­ery,” said Rombeau.

Ac­cord­ing to the Moody’s re­port, the BTL mar­ket has grown at a steady pace since early 2010, ac­count­ing for 16.8% of to­tal gross mort­gage lend­ing and 25.3% of to­tal house pur­chases as of Q1 2015. BTL gross lend­ing vol­umes have sub­stan­tially in­creased, ris­ing to GBP 7.6 bln in Q1 2015 from GBP 2.0 bln in Q1 2010.

Paragon, the UK’s largest buy-to-let spe­cial­ist, has ac­counted for around 40% of BTL is­suance since the fi­nan­cial cri­sis, with a to­tal of nine trans­ac­tions col­lec­tively worth

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