Buy-to-Let has never been quiet and this year has been an eventful 12 months. Although the year was marked by political changes, it was also a year that saw new momentum in the market. Although there will be ups and downs in 2025, we will welcome the new year with an increasingly positive outlook.
After a rather difficult year in 2023, buy-sell mortgage lending has increased this year. Comparing the second and third quarters through 2023, completions increased by 18%, with pipeline restructuring underway across the industry. The company recently reported a 48% increase in its pipeline and a 4.4% increase in net loan balances. 
Economic conditions have been more favorable this year, with inflation falling and stabilizing as reflected in lower mortgage prices, making it more attractive for landlords who may have been deterred from investing during a volatile period in 2023. It becomes.
Of course, there were downsides. The unexpected increase in stamp duty surcharges in the Autumn Statement was particularly unwelcome for domestic tenants, who are expected to see higher rents and fewer housing options.
The long-term impact remains to be seen, but looking back at our loan book, early signs are encouraging, including landlords renegotiating purchases and adjusting borrowings to account for additional costs. .
Regulatory uncertainty has increased further this year, with the new government swiftly reintroducing the Tenant Bill of Rights and putting the prospect of minimum energy standards for rental properties back on the agenda.
On the former, we are working with the Government to ensure that a sensible implementation process does not cause significant disruption to the huge industry serving landlords, tenants and the private rental sector. Regarding the latter, we will wait for the government's proposals, but as always, timing is everything and we will be wary of hasty policies.
One thing is for sure: making your home more energy efficient is expensive, and many people will need some financial help. We have retrofit-to-let products that are suitable for financing energy efficiency improvements, and we think these will become more commonplace across the market in the coming year.
Being in a position to provide advice on such products is taxing for brokers as well as building a general understanding of the law. Although aspects are often outside the scope of a broker's expertise, clients value any information or signposts that can help them solve complex problems to make their portfolios more sustainable.
Another aspect of the market that brokers should prepare for as we approach 2025 is a significant amount of maturity business.
Industry data shows more than 190,000 buy-to-let mortgages worth £26.2 billion are due to mature next year, with 136,898 five-year fixed loans due in 2020 and 54,017 from 2023. You can get a 2 year loan.
Interest rates should be lower for some customers, especially those with two-year fixed maturities, but the majority of customers who choose five-year products may face price increases, although these landlords have would benefit from a 33% rent increase compared to 5 years.
As the market is more diverse today than in more stable times of the past, landlords are beginning to take advantage of a variety of rates, fees, and ICR products. In addition to potentially triggering a shift to more flexible short-term terms, it also increases the value that brokers can offer by giving borrowers more factors to consider.
And if we look to the future, we can see that the demand for rental housing is not going away anytime soon. We would like to think that the momentum built this year will continue into next year, allowing landlords to invest in response and create opportunities for the sector.
Louisa Sedgwick is Managing Director of Mortgages at Paragon Bank
