Setting the scene for the btl landscape

Two separate pieces of data caught our eye in recent weeks which really help to set the scene for the current buy-to-let landscape.

A report from Legal & General’s SmartrCriteria tool outlined that searches on behalf of portfolio landlords soared by 21% in June, while those for consumer buy-to-let mortgages grew by 7%. ‘Holiday let/Air BnB’ was also the ninth most searched criteria point, up from tenth in May.

In addition to this, data released by HomeLet revealed that UK rents hit another record high with a further rise of 1.3% in June to reach £1,127 PCM. The data also suggested that average rents in the capital have surged to a new average of £1,868 PCM. When London is excluded, the average rent in the UK is now £948 PCM, up 1.3% from the previous month.

As highlighted in the L&G research, landlord demand remains strong from a purchase as well as remortgage perspective, and it’s the more professional end of the landlord spectrum who are actively seeking out opportunities to bolster their portfolios in a host of different areas.

Rising rents may be seen as a good sign for landlords but one of the main factors leading to these escalating figures is a lack of supply which means that – whilst opportunities are still out there for landlords to divest or add to portfolios – sourcing  these may be a little harder than in times gone by.

How to maximise these opportunities also rests heavily on getting the funding element right which is reflected in the rising value attached to a good, professional advice process and how a growing number of landlords are coming to rely upon this. And this value will only continue to rise as the market becomes ever more complex.