Paragon has no fear of George Osborne's buy-to-let tax hike

Buy-to-let lender Paragon has shrugged off the impact of Chancellor George Osborne’s attack on the sector, saying the moves will probably help professional landlords.

Paragon has said the demand for rental properties is likely to remain strong in the future, despite higher taxes on second homes that will add to landlords’ costs.

Nigel Terrington, Paragon’s chief executive, said: “Whilst the recent and proposed changes may soften the rate of growth in the sector, the drivers supporting the long-term structural changes in the housing market remain as valid today as they have over the last three decades.”

Paragon reckons loading new taxes and regulations onto buy-to-lets, such as the 3% stamp duty hike in the Autumn Statement, may deter amateurs.

But it said it will increase the trend towards investment by professional landlords, “a customer group where Paragon already has extensive experience and capability”.

The specialist lender’s new buy-to-let loans in the three months to the end of December were 80.6% ahead of the previous year at £400.9 million.

It said it was on track to increase its total new loans to landlords.