Portfolio landlords are remaining resilient, with 32 per cent of Accord’s buy to let applications coming from landlords with four or more properties.
One third of Accord’s buy to let applications have been from portfolio landlords since September. This is in spite of the fact that the Prudential Regulation Authority (PRA) revealed last moth that they would be forcing firms to closely analyse applications from landlords with four or more buy to let properties. This would be done by looking at their existing mortgages.
The high number of applications from portfolio landlords suggests that they are remaining resilient, according to Accord. This is in spite of the pile of regulatory changes forced upon them.
Of the other applications received by Accord, one fifth were from landlords classed as consumers. These are landlords with a single property within which they or their relatives had previously lived.
Another 7 per cent of the applications came from first time landlords. This suggests that potential buy to let investors have not been put off from entering the market for the first time.
Commercial manager at Accord, Chris Maggs, said: ‘We have seen a significant demand for buy to let mortgages from both experienced and first time landlords this year. 2017 was a year of remortgaging for landlords who reaped the benefit of some exceptional mortgage rates, and 2018 is likely to be no different. Last year Accord, like many other lenders, adapted its mortgage offerings to meet the changing needs of the market. Equally, as new regulation was implemented landlords have begun to adapt to ensure their business withstands the changes.’
Maggs continued: ‘This doesn’t negate the fact that things are still tough for landlords, and hopefully 2018 will give them some breathing space to take stock of the changes. However, landlords have demonstrated resilience when presented with challenges in the past, and I’m sure that will continue into 2018.’