According to research by Paragon Mortgages, almost one-in-five (18%) expected to see an increase in business of over 10% in the next year.

Just 10% of brokers said that demand from landlords was weak compared to 81% who described it as strong or stable.

Looking at mortgage sales in the second quarter of the year, Paragon said that 36% were for residential remortgages compared to 22% on buy to let.

First-time buyers comprised 23% of brokers’ new business and home movers 18%.

Fixed rates continued to dominate the market with brokers reporting 76% of cases were taken with fixed rate periods compared to 20% on trackers.

John Heron, director of mortgages, said:

“There has clearly been a surge in buy-to-let activity just as we have seen in the wider mortgage market. The primary driver for this growth would appear to be strong rental demand which should ensure a sustainable future for buy-to-let.

“The fact that so many advised sales are for fixed rates would also suggest a continuing caution about the prospect of rate increases.”