According to research by broker forum Cherryplc.co.uk, 28 per cent of advisers have landlord clients who are looking to sell while 39 per cent have clients who plan to increase rents.
Just over a quarter have no intention of making changes to their investment and just three per cent want to expand their portfolio.
Still plenty of opportunity
Donna Hopton, director at Cherry, said all mortgage clients had been impacted by turbulence in the money markets, but buy-to-let borrowers were among the worst hit due to higher rates on stress testing and the available loan sizes.
She added: “If you then consider the stream of regulatory and tax changes that landlords have had to deal with in recent years, combined with upcoming EPC requirements, it’s unsurprising that so many are choosing to sell properties. However, there are also millions of landlords who remain committed to the market, and it’s a market of continued demand from tenants and rising rents, so there will be plenty of opportunity for property investors.
“Set against this backdrop, brokers have an important role to play in guiding their landlord clients through this challenging period and helping them to lay down the foundations for future growth.”
Be careful of overstating the BTL decline
Mike Cook, chief mortgage officer at Market Financial Solutions, said rising interest rates and other regulatory changes caused landlords to “consider their options” but said the sector should “be wary of overstating the declining appeal of buy-to-let.”
He added: “With huge demand from renters and long-term capital growth on offer, residential properties will continue to attract interest from a wide range of investors.
“The challenge right now is for landlords, brokers and lenders to work together for the greater good. It starts with flexible and competitive products, whether that’s bridging finance or buy-to-let mortgages. Brokers and lenders must provide landlords with access to the capital they need to purchase, renovate, refurbish and improve the EPC ratings on properties. This will ensure a buoyant rental market and help drive up standards. Further, by delivering choice and transparency, lenders can also help landlords navigate the dual challenges of base rate hikes and rising inflation.”
