Hopes have grown that uncertainties around the specialist lending market could be disappearing, leaving “no shortage of value” across the sector, according to analysts.
Panmure Liberum in a note flagged signs that government and regulators appeared to be taking a more “pragmatic approach” after dominating the sector in 2025.
“Regulation has without doubt been the greatest issue facing companies and their shareholders over the last year.”
Following the likes of court cases around motor finance mis-selling, analysts added: “2025 might be different and attention can once again return to fundamentals.”
Highlighting structural growth opportunities in the buy-to-let market, Panmure pointed to “well placed” Paragon Banking Group PLC (LSE:PAG), on which it had a ‘buy’ rating.
OSB Group PLC (LSE:OSB) was hit with a ‘buy’ rating too, alongside Vanquis Banking Group PLC (LSE:VANQ), which Panmure said had “enormous” promise in the “underserved credit market”.
International Personal Finance (LSE:IPF) also bagged Panmure backing, alongside Distribution Finance Capital Holdings PLC.
“The [buy-to-let] market continues to professionalise,” Panmure said, “the rate of household formation exceeds supply; rental income is rising; and arrears rates remain low”.
“After a period of more muted volumes, lower interest rates have the potential to accelerate new lending across the sector.”