Appearing on a podcast discussion in association with Mortgage Solutions, Neil Cadwallader (pictured), field business development manager (BDM) at Family Building Society, said the buy-to-let market had gone through “tumultuous changes” in the last two or three years but, “in general terms, I think the buy-to-let market is in a lot better health than generally perceived”.
He said there were fewer properties for rent, and this was being outstripped by tenant demand. Cadwallader said rental yields were also higher as rents increased.
“To summarise it… the buy-to-let market is alive and kicking,” Cadwallader added.
Stuart Heavens, BDM at Family Building Society, said remortgage business was driving this growth amid a dip in purchase activity.
He said tax and legislation changes meant “landlords are now having to think a bit harder about whether to complete a purchase or to proceed with a purchase or to enter the market altogether, but the remortgage market is strong”.
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Heavens added: “There are landlords out there who have mortgages on buy to lets, interest rates have gone up and now is the most important time for them to find a mortgage adviser.”
He also said there was more choice, particularly with products that offered mixed fee and rate structures.
Cadwallader said stagnating property prices made the buy-to-let sector “enticing” and coupled with improving yields, portfolio landlords were seeing value in the sector.
Watch the full episode [7:12] hosted by Shekina Tuahene, commercial editor and deputy editor of Mortgage Solutions, with guests Neil Cadwallader, field BDM at Family Building Society and Stuart Heavens, BDM at Family Building Society.
This is the first in a three part series, look out for the following episodes over the course of this week.
