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BTL business is there for the taking so let’s support landlords – Duncombe

by: Jeremy Duncombe, director of intermediaries at Accord Mortgages
  • 06/05/2022
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BTL business is there for the taking so let’s support landlords – Duncombe
Some analysts are forecasting we’ve seen the end of the buy-to-let boom, as people ebbed away from major cities during the pandemic.

Meanwhile others are predicting the tide’s about to turn and people will flow back, so it’s hard for anyone to be certain about what will happen in the rental sector.

It’s the property market after all, and we only need to look at the twists and turns of the past few years to know the only thing we can expect here is the unexpected.  

That said, there are some strong signs that landlords are on the march once again, so much so that recent analysis suggests investors are behind one in 10 UK property purchases this year, totalling more than £8bn worth of property in the first quarter alone.  

And with average monthly rents said to have increased by up to 15 per cent since before the pandemic, we’re seeing average rental growth at its highest levels in more than a decade.  

Further still, as the cost of living bites there’s a growing inability to save for a deposit, which combined with squeezed affordability, means there’s a realistic expectation that we’ll start to see more renters as the dream of homeownership may be pushed too far out of reach for many. All this points to ever-lucrative investment prospects for existing and potential landlords, and with that comes opportunity for brokers and lenders.  


Change on the horizon 

But with so much change afoot in the buy-to-let market in terms of regulation and policy, it’s important landlords feel supported by knowledgeable and expert advisers, such are the complexities of stamp duty surcharges and tax relief removal to name a couple. 

It might sound obvious, but landlords have different needs to residential buyers, and many have been in the business a long time.  

Brokers serious about attracting buy-to-let business can show their value by going beyond what landlords can do independently, demonstrating their detailed knowledge of the rental market and, crucially, their understanding of which lenders will be best placed to meet a landlord’s needs. 

Keeping abreast of ever-changing lender criteria can be difficult but utilising a business development manager (BDM) can help here. Lenders too are making strides to strengthen support for the buy-to-let market.  

I recently spoke at the Buy to Let Market Forum to explain how at Accord, we’re setting ourselves up to support the sector more than ever before.  

These improvements come from working together with brokers. BDMs are our direct link to advisers, and they regularly feedback ideas and propositions brokers feel are lacking in the market.  

Early repayment charge-free products for landlords is a great example of that this year; we heard brokers wanted them as part of a wider product choice. 

Being transparent with your business strategy helps people understand quickly what you’re about, where and when you can help and why you’re best placed to do so. In an increasingly buoyant property investment market, making it clear you’re a buy-to-let expert will attract the right sort of clients. 

Showing them how you can help maximise their profits and securing the finance they need by working with the right lenders could win you more buy-to-let business both now and in the future. 

Above all, lenders too want brokers to be an extension of their team. Working together is the only way we’ll all deliver the best products and service to landlords – who this year might need us as much as ever. 


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