View more on these topics

Buy-to-let boosted by competitive products

Mortgage Trust’s October buy-to-let intermediary forecast reveals that increasing lender competition in the sector is helping to encourage the market.

50% of buy-to-let intermediaries cited the increased availability of more innovative and competitive mortgage products as a key factor in the generation of buy-to-let business volumes. This benefit was supported by the key fundamentals of strong rental demand and a positive outlook for the housing market in general.

These positive factors should result in more investment from existing landlords and may also encourage first time investors into to the sector. For the first time in seven months the percentage of business expected by intermediaries from first time landlords has risen. The rise, to 17%, shows that intermediaries are confident about future property investment.

Furthermore the results also reveal that brokers think regulatory changes will pose little threat to the market. A mere 5% of respondents expect forthcoming legislation for houses in multiple occupation to hinder the generation of buy-to-let business and only 10% believe that the introduction of Home Information Packs will adversely affect investor behaviour.

Intermediaries have on average seen a 6% increase in business volumes since the base rate change in August, and 47% state that they expect interest rates to fall over the next three months. Reductions in the base rate generally encourage borrower activity, and these upbeat predictions from buy-to-let intermediaries reveal a positive market outlook.

Nicola Severn, marketing manager at Mortgage Trust, says: “Mortgage Trust’s October buy-to-let intermediary forecast shows that intermediaries welcome further product development and believe that healthy competition in the market serves to boost the sector.

“However, they are aware that the long-term future of the market is first and foremost dependent on factors such as steady rental demand and a healthy interest rate environment. Overall, brokers seem clear the market is working well and are confident for the future of the sector.”

Recommended

Keep it local, say the B2L pundits

Investing close to home is key to successful buy-to-let, according to pundits surveyed in this week’s Mortgage Strategy cover feature. Five industry experts give their views on where and how they would invest 100,000 in the property market. Most would prefer to stick close to home so they can keep an eye on their investments. […]

Defaqto study highlights IPI failings

A new study by Defaqto claims that income protection insurance policies could breach the principles of the Financial Service Authority’s Treating Customers Fairly initiative.In its first report into UK long-term IPI products, Defaqto cites the consumer detriment caused by the complexities and inconsistencies in policy terms and conditions as providers seek competitive advantage rather than […]

Landlord associations join forces

The National Landlords Association and the Dorset Residential Landlords Association have joined together in another step towards providing a coherent and more unified voice for the private-rented sector. The DRLA Committee has recommended to its members that their association be remodelled as NLA (Dorset) and this has now been passed at a general meeting. David […]

B&B panel shock rumoured

Bradford & Bingley will reveal its revised lending panel by the end of the year and it is rumoured there will be a shock removal, Mortgage Strategy has learned. In August MS reported the panel could be slashed from 25 lenders to eight after the high street broker’s shake-up at the start of this year […]

Newsletter

News and expert analysis straight to your inbox

Sign up