Buy to let mortgage brokers are increasingly working with new BTL landlords
as interest in the private rental sector grows, says one online search
specialist.
According to Knowledge Bank, buy to let brokers are
searching for the criteria from lenders for their buy to let products.
And, for the tenth month in a row, the term ‘first time landlord’ has been
among the brokers’ top searches.
Knowledge Bank says that the search term shows that investors who would
normally look to buy stocks and shares are now increasingly paying
attention to a buy to let investment.
The firm’s operations director, Matthew Corker, said: “The UK’s rental
market is receiving a lot of interest and this is perhaps the result of
stock market volatility due to the pandemic with investors turning to what
they may see as being a safe investment.”
First-time landlord interest
He added that over the past year house prices have been rising, along with
rental property interest which will be helping to fuel the first-time
landlord interest.
The firm is predicting this trend for brokers helping first time landlords
to continue – particularly after the government announced that they would
back 95% loan to mortgages.
The search criteria specialist also found that there may be a big surge in
the number of landlords looking to borrow money to refurbish a property or
inject capital into their business.
That’s because the search term ‘second charge loan’ has re-entered the top
five of the most used terms being used in the bridging sector since October
last year.
The managing director of Accommodation for Students, Simon
Thompson, said: “We have been saying for a long time that the future for
the buy to let sector is a good one and news that first time landlords are
increasingly interested in investing is welcome.”
Landlords warned about growing pet numbers
Meanwhile, one inventory specialist is warning landlords that they need to
spot the early signs of any pet damage to their property with a planned
change in the rules.
The country’s largest provider of inventory services, No Letting Go, says that demand for tenancies will rise as
the government makes it easier for tenants to keep pets.
The firm’s chief executive, Nick Lyons, said: “Landlords and agents will
need to have measures in place for dealing with the increased risk of
damage to their property.
“Allowing tenants to keep pets, if managed effectively, can encourage
longer tenancies and boost demand for available properties with higher
average rents.”
