Paragon benefits from shift in buy-to-let market
Hugh Fairclough, Partner and Head of Financial Services at RSM UK, comments on Paragon’s half-year results:
“Paragon’s results show new buy‑to‑let mortgage advances remain resilient, but are increasingly concentrated among portfolio landlords and corporate structures, while redemptions are edging higher but remain low, as smaller landlords exit or refinance in response to tighter regulation. The net effect is not contraction, but churn, with capital recycling into fewer, more sophisticated hands.
“The Renters’ Rights Act is accelerating a decisive shift in the buy‑to‑let market – from fragmented, private landlords to scaled, professional operators – and lenders’ books are following suit. Paragon’s results underline that pivot, allowing the company to sharpen its focus on its core target market of commercial landlords.
“That shift is changing the risk profile of the market and plays directly to specialist lenders like Paragon. The winners will be those positioned for a more institutional private rented sector, where underwriting depth and landlord specialism matter more than pure lending volumes.”