Rickards is worried some advisers, particularly within smaller operations, may decide landlord business has now become too complex and not worthwhile.
The buy-to-let market has been rocked by tougher tax treatment, as well as tighter lending criteria over the past two years.
Lenders have taken differing approaches to the most recent implementation of the Prudential Regulation Authority (PRA) portfolio lending rules, which has further complicated matters.
As a result, buy-to-let is now a more complex market for intermediaries to navigate, which could lead to some shying away from the sector.
Too difficult for smaller brokers
Rickards told Mortgage Solutions: “I am concerned that some brokers may find buy-to-let too complex.
“Smaller brokers, who do a little bit of everything, are the ones I’m worried about not doing buy-to-let because it’s too difficult.”
But he has urged brokers to stay the course and turn to lenders for greater guidance on cases.
Rickards said: “There’s also no harm in brokers ringing BDMs to talk through cases – if in doubt ring.”
BM Solutions is trying to provide more and ongoing support for advisers, with a telephone team that rings brokers to sense check all portfolio applications.
The lender is focused on doing “traditional buy-to-let business really well” and providing that support and service for brokers, according to Rickards.
He said brokers should “work with lenders and their support teams to understand the rules and to keep writing good quality buy-to-let business, because there is plenty out there”.
Landlords are in it
There is no evidence that landlords are selling up on mass as the current tax relief changes are rolled out, Rickards added.
He said: “Landlords are a hardy bunch… they’re in it for the long-term and they seem to be wedded to that strategy.
“If landlords are selling, other landlords are buying.”
Despite the apparent resilience of buy-to-let investors, Rickards has called for a period of calm in buy-to-let, so that the market can take stock – he is also pushing this issue on the government and regulators, as part of his role as chair of the Intermediary Mortgage Lenders Association (IMLA).
He said: “There’s been so much going on, it would be nice to have a year of stability to let everything settle.”
