Focus on landlords as buy-to-let grows

22 March 2010

As accessing affordable housing becomes like getting hold of Glastonbury tickets it’s little wonder that first-time buyer numbers are falling, with many relying on the rental market instead.

With the Council of Mortgage Lenders estimating that 80% of all under-30s need financial help from a relative to get on the housing ladder, some may say if people were less focussed on saving for festival tickets they would be more able to save for deposits.

Of course, it’s not as simple as that. But it is a worry that according to Rightmove, the proportion of potential buyers expecting to enter the market in the next 12 months has fallen for the third consecutive quarter.

Any contraction in the first-time buyer market affects the buy-to-let sector and it is likely that rental yields and income will hold up well.

The buy-to-let market is in flux and the economic conditions of the past couple of years have knocked amateur landlords’ confidence. The tough climate has resulted in them shying away from the market, with many offloading properties swiftly.

On the other hand, portfolio landlords may see such properties as relatively easy pickings and take up the amateur slack.

It is these professionals who will dominate the market going forward, which underlines the importance of brokers investigating ways to best serve them so they can make the most of opportunities in the sector.

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