The publication of LSL’s buy-to-let index for February highlights a couple of emerging opportunities for brokers in the sector.
First, the report confirms that investors are continuing to pile into the buy-to-let market, encouraged by the opportunity to generate decent rental returns and facilitated by a greater choice of mortgage products.
In Q4 2010 the number of buy-to-let deals increased by 7% and strong tenant demand should see this upward trend continue throughout the year.
A growing market being supplied by an increasing number of competitive products is excellent news for brokers.
The report also confirms that rent arrears remain high, with 11% of all UK rent being in arrears.
Landlords can, of course, protect themselves against rent arrears with specialist rent guarantee and legal expenses insurance. Again, this provides brokers with an additional opportunity to boost their income.
Buy-to-let is a good example of a sector where brokers can use their specialist knowledge to generate additional fee income.
Unlike placing vanilla mainstream mortgage deals, buy-to-let enables brokers to add value to the service they provide clients. And adding value is what the role of a broker should be all about and what will put money in their bank accounts.