Brokers should keep eye on macro picture

Landlord optimism is at its highest for almost four years. The National Landlord Association’s Landlord Optimism Index reveals around 65% of those questioned predicted the next three months would be good or very good.

JAMES WATSON, SALES DIRECTOR, PAYMENTSHIELD

The survey also showed a slight increase in optimism since Q2 2010.

What’s promising is that the positive outlook for landlords and buy-to-let reflects what we are seeing in the industry.

Availability of these mortgages and demand from tenants appears to be showing no signs of tailing off. But it would be foolish to be overly optimistic.

Landlords ploughing all their investments, time and passion into a property portfolio should make sure they have savings, insurance and a back-up plan.

Brokers will no doubt have seen higher demand from landlords but there is demand elsewhere too.

Kensington Mortgages reported that one in five mortgage brokers said over half of their clients seen in the past three months had never consulted a broker before. This suggests consumers value professional advice.

A Paymentshield survey found almost half of individuals in the UK have never reviewed their finances with a professional.

Brokers need to not only keep an eye on consumer trends and spending habits, but also on the macro picture. This will point them in the direction of where the economy is heading and help them prepare for the demand of products that may be around the corner.