View more on these topics

Buy-to-let watch: Adapting to an ageing population

There are always a variety of trends to follow in the housing market. In recent years we have seen large-scale house price fluctuations, regional housing bubbles, ageing first-time buyers, a buy-to-let boom and landlords reassessing the merits of their product portfolio. We have even seen a flurry of property raffles take place as sellers struggled to achieve the prices they expected for their homes.

Some of these trends are driven by supply and demand dynamics within the housing and mortgage markets and others influenced by factors way beyond them. The fact that the UK population is living longer can hardly be classed as a new trend, but it is one which is really starting to make an impact on products and criteria throughout the private rented sector and the whole lending community.

In recent weeks we have seen statistics outline that over-50s accounted for 15 per cent of rented households so far this year, up from just 11 per cent in 2012. The Hamptons International’s Monthly Letting Index also showed that nearly a third of this group were suggested to be pensioners and it was estimated that over-50s have rented 791,580 homes in Great Britain in 2019, 61 per cent more than in 2012 (490,450) and 8.2 per cent more than last year.

Data from Commercial Trust Limited revealed that there has been a surge in the number of older BTL investors during 2018. In addition, Knowledge Bank highlighted that May saw a significant rise in the number of searches from intermediaries looking for later life lending options. For BTL, the top searches were lending to limited companies, first-time landlord and the requirement to be a homeowner.

It appears that renters are getting older, BTL investors are getting older and residential borrowers are also getting older – so, how is the market adapting?

Mortgage terms have crept up, with some lenders extending their maximum age restrictions to meet the shifting needs of older borrowers. This is also the case in the BTL sector where maximum ages at the end of product terms have risen, and in some cases have been lifted altogether.

These are moves which also highlight how important the advice process is for those advancing in their years, and this is not only attached to their personal investment or housing requirements. With more and more children looking to their parents and even grandparents for financial support in their property purchases, this is an area which is only going to get even more complex in the coming years as more lenders in the residential and BTL markets adjusting their offerings accordingly.

June BTL rates

Rate MAX LTV % Description Arrangement Fee Rent Cover ERC
1.59% 60%

Leeds Building Society

2 year tracker

£500k max. loan

£999

Free valuation

140% @ 5.5%

3% in Yr 1

2% in Yr 2

1.69% 75%

Post Office

2 year fixed

£500k max. loan

£1,495

Free valuation

145% @ 5.5%

3% in Yr 1

2% in Yr 2

1.89% 60%

TSB

3 year fixed

£500k max. loan

£1,995

£250 cashback

145% @ 5.5%

3% in Yr 1

2% in Yr 2

1% in Yr 3

1.99% 60%

Platform

5 year fixed

£350k max. loan

£1,999

£500 cashback

145% @ 5.5%

5% in Yr 1

4% in Yr 2

3% in Yr 3

2% in Yr 4

1% in Yr 5

2.28% 75%

Virgin Money

5 year fixed

£1m max. loan

£1,995

£500 cashback

145% @ 5%

4.5% in Yr 1

4.5% in Yr 2

4.5% in Yr 3

4.5% in Yr 4

4.5% in Yr 5

Recommended

The Buy To Let Business rebrands as Dynamo

The Buy To Let Business will now be known as Dynamo. The name comes from a project between Countrywide, which made a significant investment in The Buy To Let Business in 2016, and venture company Blenheim Chalcot, who first launched a digital mortgage broker called Dynamo and have since integrated it into the Countrywide Financial […]

Buy-To-Let Watch: Imagining life after Section 21

The government is considering abolishing the easiest mechanism for evicting tenants, so what are the implications for the BTL market? Landlords are used to the comfort of knowing that, supported by Section 21, as long as their tenants are outside of their initial fixed-term tenancy, they can serve notice. However, since the government has announced […]

Leek United promotes new BDM

Leek United has promoted Deb Bree to the position of business development manager. Bree has been at the building society since 2015, working as a branch manager and a telephone BDM. Prior to this she spent over 25 years at The Co-operative Banking Group as a finance administrator. In her new role, Bree will work […]

Health - thumbnail

Absence management systems gone AWOL from UK’s SMEs, reports Jelf

A quarter (23 per cent)* of the UK’s small to medium-sized enterprises (SMEs) do not have an absence management system in place, according to new research from Jelf Employee Benefits. Despite 69 per cent* of organisations having a system in place, three-quarters (75 per cent) report that it is not providing them with sufficiently empowering absence or health data to inform an effective wellbeing programme.

Newsletter

News and expert analysis straight to your inbox

Sign up