Robert Sinclair, director of AMI

Although the Spending Review extends support for those mortgage holders in difficulty, this appears to be at the expense of those benefiting from social housing who will now experience raised rent thresholds.

Combined with proposals for social housing to be subject to periodic need assessments and the loss of tenants’ rights to permanent residence, this is a major structural shift.

The clear focus of the Mortgage Market Review in reducing property price bubbles and property as a casual investment vehicle further changes the market.

However, we are still a long way from fully functioning banks, funding is still restricted in mortgage markets and the average age of first-time buyers is still escalating. The move to an enlarged rental market, with people renting for a lot longer looks inevitable.

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The future points towards fewer, larger, professional buy-to-let landlords using corporate or larger pension fund vehicles.

Advisers and firms should look to develop good relationships with lenders who are in this market as they will offer an increasingly valued specialism. Good brokers will not only source good loan portfolios, but also quality buildings insurance, key-man cover and the right business risks cover.

Those landlords will want good letting agents who will source quality tenants. Brokers should not miss opportunities to build better links with these good agents as building relationships in this market will be key.

Using good estate agent relationships to get in on the ground floor of rental property developers will also be a skill brokers should look to develop. Traditional bank finance might remain scarce and more, small, niche lenders will come to market looking for returns.

Brokers will be their route to market, so being seen as a specialist in this field could reap dividends.

Also answering in this week’s Market Watch are:

Sally Laker, managing director of Mortgage Intelligence

Philip King, chief executive of the Institute of Credit Management