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First time landlords: Watch this space

20 Mar 2024

As we enter a crucial Spring season for the housing and mortgage market, it will be interesting to note any transactional uplift when it comes to borrowing types, property types and on a regional basis.

Opening Door

Leading into 2024, it was evident that landlords’ intentions were turning to the purchase market with data from the Q4 BVA BDRC Landlord Panel research outlining that purchase intentions for the year ahead had increased by 3% to 11%. With this figure rising to 19% for those landlords with 11+ properties in their portfolio, it’s evident that more purchase business will stem from the more experienced landlords with larger portfolios.

Read our Landlords planning to purchase jumps from 3% to 11% article 

In a word no, although to what level may depend on the definition of a first-time landlord. Within our BTL brand - Buy to Let by Foundation – we define first-time landlords as someone who has not operated a residential buy-to-let property within the last 12 months. We also include the stipulation that the applicant must currently be an owner-occupier. With this definition in mind, there is more to the first-time landlord lending picture then first meets the eyes and it would be foolhardy to ignore this vital component of the BTL sector.

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Looking at the current market, it may be the case that many previous landlords have sold properties in recent years without immediately rebuying for a number of reasons. One of which may have been the potential cost implications attached to a then impending EPC deadline. But, with the legislative goal posts changing towards the back end of 2023, there may now be the temptation to utilise any cash reserves to get back into the BTL market in the wake of rising tenant demand, increased market stability and opportunities emerging across the UK property market. Especially when considering a more diverse choice of property type which can generate stronger rental yields.

Check out the lastest Buy to Let by Foundation Product Guide

This has led to us to incorporate new standard HMO products into our BTL proposition and these are specifically aimed at first-time landlords who can benefit from our extensive experience within this space.

Of course, this property type comes with greater responsibilities and requirements than standard rental property types, meaning the advice process will play an even more critical role for such landlords. Not only in delivering the necessary funding but to also help them understand the unique requirements involved in such a purchase and the ongoing needs from a property management standpoint.

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*This article was originally published on The Intermediary 

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