Global uncertainty, changing customer needs, and fresh regulatory pressure are all influencing how brokers operate.
While the base rate looks set to stay put until at least August, international events are still impacting markets. Even so, lenders are active, competition is strong, and key parts of the market are ticking along.
Resi demand and affordability front of mind
Residential demand is still going strong as we head into what is usually a quieter period in the market. The stamp duty changes earlier this year caused a short dip, but things bounced back quickly.
Brokers now face different challenges, funding costs, client retention, and new rules. The cost-of-living squeeze has shifted people’s debt levels and spending habits, so more borrowers now need tailored support, which is a great opportunity for both brokers and lenders.
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Buy-to-let pressures and resilience
Buy-to-let remains under pressure, but there’s still plenty going on. Some smaller landlords are selling up, but professional investors are sticking with it. Many are refinancing, as five-year fixes from 2020 come up for renewal.
Rental demand remains strong, even with rule changes like the Renters’ Reform Bill prompting landlords to be more selective with tenants.
Though the landscape is changing, the sector is showing resilience. Landlords are adapting their strategies, and lenders are responding with broader and more flexible product offerings.
Regulatory headwinds
The CP25/11 consultation has stirred up debate, especially on execution-only sales and the true value of broker advice.
Product transfers (PTs) are also in the spotlight. Some brokers question whether charging a fee is fair, but many believe that not charging risks undervaluing the service.
Specialist lending on the rise
While some mainstream lenders are playing it safe, specialist lenders are stepping in. Demand is rising for more flexible lending, particularly from those with complex income or affordability challenges. But to succeed in this space, brokers need good systems and lender relationships.
Q3 is all about staying agile, staying focused and remaining resilient. The market has its hurdles, but it’s still moving. Brokers who are flexible, open to specialist lending, and in regular contact with clients will be in the best position. In a noisy market, honest, informed advice remains a broker’s biggest strength.
Adrian Moloney, group intermediary director at OSB Group