Landlords have been focussing on managing and increasing portfolios – Griffiths

by: Steve Griffiths, sales director at The Mortgage Lender
  • 11/08/2020
  • 0
Landlords have been focussing on managing and increasing portfolios – Griffiths
The Covid-19 lockdown put the brakes on what had started out to be a very busy year for many of us in the mortgage business and the whole industry had to adapt quickly to meet customer needs that only a few weeks earlier had not been on any of our radars.

 

Mortgage payment deferrals, non-physical valuations, and other changes to our world came thick and fast.

While reduced lender capacity and appetite had an immediate and longer lasting impact on the residential sector, it quickly became clear that landlords’ focus was on the best way to manage and increase their portfolios.

Even though the possibility of house price deflation is a concern, other recent indicators give investors a more positive outlook.

Homelet recorded a yearly rise in rent of 1.1 per cent in June and Goodlord’s Letting Activity tracker jumped 18 per cent on completed lets in June compared to last year as pent up demand for new homes over lockdown translated into confirmed tenancies.

Advisers and lenders have certainly been kept busy by their landlord customers in recent weeks.

According to Twenty7Tec search volumes for buy-to-let products on their sourcing systems jumped by nearly 50 per cent between May and June as England opened up for physical valuations and were eight per cent higher than the number of searches in March this year.

 

Positive figures

Our own figures show the same trend.

Between February, the last full month before lockdown, and June this year we saw a 116 per cent increase in the number of applications and a 165 per cent increase in the total value of those applications.

As well as a healthy return to form for BTL, the increase in applications also highlights the agility of newer lenders.

In tough market conditions those that are able to step up with product availability and service delivery have an opportunity to develop new and existing intermediary relationships and maybe challenge the status quo – ultimately leading to healthier competition and better choice and outcomes for brokers and their clients.

If the latest figures we are seeing are indicative of the market as a whole they prove landlords can weather the storm and see the next buy-to-let normal as an opportunity.

 

 

There are 0 Comment(s)

You may also be interested in

Read previous post:
HSBC to cut rates on 60 per cent LTV deals

HSBC is to lower rates on selected deals at 60 per cent loan to value (LTV).

Close