Landlords show confidence in BTL market

Growing numbers of landlords in the UK are showing confidence in the buy to let sector by taking out larger loans, data reveals.

According to Keystone Property Finance, 58% of their clients have been applying for bigger loans since December last year.

Keystone is a specialist BTL lender with loan sizes ranging from £250,000 to £1 million.

They say that the rise in landlords opting for larger loans could be down to them looking to take advantage of the Stamp Duty Land Tax (SDLT) incentive.

The firm's figures also highlight that landlords have growing confidence in the market and are looking to future property prices increasing and positive post-pandemic rental yields.

Landlords who are applying for larger BTL loan products

The figures also show there are two types of landlords who are applying for larger BTL loan products with 62% coming from landlords using a limited company. Individual landlords accounted for 38% of applications.

The firm's managing director, Elise Cool, said: "The data shows that landlords are confident about the BTL market and most customers are looking to secure a larger loan for purchasing a property.

"The SDLT incentive undoubtedly presented landlords with an opportunity to profit and invest in a higher value property."

The figures have also been welcomed by Simon Thompson, the managing director of Accommodation for Students, who said: "The data from Keystone highlights that landlords are increasingly optimistic about the future of the BTL market by investing in properties with larger loans.

"There are still good investment opportunities for landlords, and this is good news for tenants with landlords investing to provide quality homes for rent."

Landlords urged to understand gas safety laws

Meanwhile, landlords are being urged to understand fully the gas safety laws that affect their properties and tenants.

A tenant survey by property management software firm Plentific reveals that 46% of tenants in private rented homes do not believe their gas appliances had been checked in the past year.

That compares with 18% of tenants living in social housing.

Landlords are legally required to attempt to inspect gas appliances in their property, despite Covid-19 restrictions.

Failing to do this could lead to a hefty fine, or a prison sentence.

The firm's co-founder, Cem Savas, said: "Tenant safety is of paramount importance and failing to comply with a legal requirement could put both the landlord and resident at risk.

"There are complexities and landlords must understand the requirements of the legislation so they do not break the law."