Brokers attending The Specialist Lending Event 2019 were told to raise the possibility of diversifying with their clients.
Vida Homeloans director of sales Louisa Sedgwick noted that holiday and short-term lets were not subject to the extra stamp duty charges and the other tax changes which have been introduced.
“I think it’s a brilliant opportunity for landlords who are thinking about diversification,” she said.
“So you might find if you’ve got customers looking to diversify, holiday lets is a great way to start.
“And also semi commercial – again it’s outside those new rules. So you’ve got some other opportunities for landlords to try and maybe diversify.
“It is a good conversation to have,” she added.
‘Hunting down higher yields’
HTB managing director of specialist mortgages Charles McDowell agreed that this niche sector was becoming increasingly popular, along with semi-commercial and commercial properties.
“More professional landlords are hunting out higher yield from houses in multiple occupation (HMOs) and semi commercial properties,” he said.
“Also with short-term lets, it doesn’t have to be just holiday lets, it can be corporate lets for professionals in the cities.
“All of this is hunting down higher yields and once landlords find higher yields they are looking for more efficient ways to manage those.”
McDowell added that this had included more use of offshore investments and tax planning, along with limited and other company structures.