In this, the first part of the video panel debate on the buy-to-let sector, our panellists explored the opportunities and challenges in the market, looking past the dire headlines in the national press, to paint a more realistic picture of the sector.
However, the panel did not shy away from the challenges that were affecting the market.
Darren Deacon, head of intermediary sales at Family Building Society, said: “The main challenge is meeting the stress test. This time last year it was vastly different. It’s an issue across the whole portfolio and a very challenging aspect.”
Fellow panellist Richard Merrett, director strategic relationships at SimplyBiz Mortgages, agreed, but noted that opportunities exist among the obstacles.
He said: “The biggest issue is the stress testing on affordability. Especially at high loan to values. But with challenges come opportunities. High interest rates mean the necessity to remortgage is greater and there is a huge remortgage opportunity.”
He also pointed out that falling house prices meant landlords had become more ‘acquisitive’ and that the sector was ‘nowhere near as bad as the national press likes to make out.’
Greg Cunnington, chief operating officer of LDN Finance, also gave a realistic perspective, bridging the gap between being overly optimistic and the doom-laden musings of the media.
He said: “At a recent event, we were asked what a word cloud for the buy-to-let sector would look like. The first word was challenging, the second was something I can’t really say on camera. [But] there is a positive market out there. For example, specialist lenders are [stepping in] and doing product transfers to help landlords with innovative products.”
