Here we look at the future of Buy-To-Let and the current boom with insight and views from Blackstone’s Head of Residential Property, David Walton.
The buy-to-let market has been particularly hard hit over the past 12 months, with the introduction of Energy Performance Certificate regulations and tighter tax rules forcing landlords to make considerable changes. But now comes a more positive bulletin for property owners: there are officially more buy-to-let mortgage products available than ever before.
This month, it was revealed that the number of products has soared to an all-time high – with 2,022 deals now available to borrowers. Providers are offering a wider range of deals in an attempt to lure back landlords who were tempted to leave the market for good.
Reasons behind the boom
There are a number of factors that may have influenced the sharp rise in buy-to-let mortgage products in recent months.
Two different groups of landlords now exist: those with one or two properties or less, and those known as portfolio landlords. Given the different priorities of each type of landlord, providers need to offer specific products for each.
Competition has also increased, with lenders fighting amongst one another for a bigger share of a smaller market. The best way for them to convince landlords to choose their service is by offering various incentives. The more products available, the wider the appeal – meaning increased interest from property owners with different backgrounds.
The buy-to-let mortgage product boom has raised a few eyebrows across the industry, but Blackstone’s Head of Residential Property, David Walton, believes that activity may yet increase further.
“It is likely to remain an attractive investment,” he commented.
“The government is doing its best to dampen buy-to-let investing with hikes in Stamp Duty, removal of mortgage interest relief, and changes to wear and tear allowances.
“Investors will have to become more professional and have better business plans, and it is likely to shake-out the casual investor with one or two properties.”
“Investors may need to focus more on yield and less on capital gains, but there is still money to be made with the right properties.”
For more information about the buy-to-let market, don’t hesitate to contact our property and conveyancing solicitors on 020 7129 1160 for our London office, 0161 929 0121 for Manchester – or email on firstname.lastname@example.org.