Paragon predicts buy-to-let growth for year end

Paragon predicts buy-to-let growth for year end

Paragon Banking Group has predicted its buy-to-let pipeline for 2018 will be bigger than the previous year's.

In a trading update published today (18 September), Paragon reported its buy-to-let pipeline for the year to the end of September 2018 is expected to have increased by more than 25 per cent on last year’s level.

A Paragon spokesman said its buy-to-let operation had maintained a focus on professional landlord business, now representing around 90 per cent of its application flows.

In July the group reported a £71.2m increase to its buy-to-let pipeline in the most recent quarter to close at £858.8m.

Capitalising on "strong market conditions", the group announced its portfolio purchase division, Idem Capital, sold a wholesale funded portfolio which is expected to have a one-off favourable impact of around 7 pence a share on earnings for this year.

Paragon reported its underlying profits and business continued to operate in line with expectations, with the integration of Titlestone - the specialist residential property development finance firm bought by Paragon earlier this year - progressing well.

Nigel Terrington, chief executive of Paragon Banking Group, said: "The Idem Capital transaction and Titlestone acquisition in the final quarter of 2018 demonstrate the group's ability to refocus capital to support its growth businesses and enhance value for shareholders.

"In spite of the prevailing macro uncertainties we are well placed to benefit from scale economies in the commercial lending division, and the group continues to cement its position as a leading lender to professional landlords in the UK, underpinned by its 22 year history in this market. We look to the future with confidence."

Paragon is expected to release its full-year results on 21 November.