When the Council of Mortgage Lenders announced last month a marked increase in the number of buy-to-let (BTL) mortgage approvals, the news was cheerfully greeted by many in the property sector as a sign of the growing robustness of the market and of the economy more generally.

The rise of BTL shows no sign of abating this quarter. But to assume that the market will continue to benefit from the low interest rates we’ve seen of late risks showing a degree of short-sightedness.

Yet the current increase in demand in this sector is undeniable. For our own part, here at Shawbrook Bank we recently announced the introduction of two new mainstream BTL products.

This addition to our existing specialist range was in direct response to the overall increase in demand we were seeing from our brokers partners for BTL finance, including that required for more straightforward BTL deals. We were keen to provide for brokers in this area, because we believe there is potential for sustainable growth in the BTL market.

Looking at the housing landscape, it does seem that the private rental sector (PRS) will continue to play an extremely important role in the market as a whole. As new policy leads to a decline in social housing, and as owner-occupiers face tougher financial obligations, that role will most likely get even bigger, and as such PRS presents an area of significant and seemingly sustainable opportunities for investors.

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BTL isn’t for everyone, however. While the current returns on this kind of investment are extremely attractive – at a 3% premium to the best buy rates for five-year bonds right now – tried-and-tested investors can best take advantage of the opportunities this affords.

The experience of a prospective client is always an important factor for us in reaching a lending decision. Thanks to the diligence of our brokers, we are able to assess a client’s investment history, along with the details of the property in question, in some depth.

This is because we recognise that experienced, switched-on investors are more likely to be responsible in their outlook, so are best-placed to make the most of the prospects in the BTL market – even when economic conditions are less friendly.

They will be aware of potential developments in the market – like the probable changes to interest rates after this current period of forward guidance, the fallout from Eric Pickles’ recent announcement that tenants will be able to demand longer leases, or the impact of the implementation of the Mortgage Market Review (MMR) in April next year.

Strictly speaking, the BTL market is not included in this new MMR regulation, and as a non-consumer-facing business Shawbrook’s commercial mortgages team is not directly implicated.

However, some of the lenders who also provide consumer finance may find that the regulation applied to those parts of their business spills over into their buy-to-let offering. Those lenders, brokers and property investors who already take a responsible approach should feel the shift much less.

Pricing and fees may continue to improve as the benefit of reduced funding costs start to flow through, but there is a limit to how much further interest rates can fall.

It is therefore all-important for brokers and their clients, as well as lenders, to take affordability into account when sourcing or providing BTL finance. To accommodate potential changes, Shawbrook always applies a transparent stressed rate to loans rather than a pay rate.

Ensuring that lenders, brokers and landlords don’t fall into the trap of over-gearing has to be a priority. We’re excited by the rise of the BTL market and want to help our brokers and their clients make the most of it. But taking a sustainable approach is key to preventing any of us feeling bumps in the BTL road, if and when they occur.