And this has been ably supported by an adaptable and innovative lending community and the hard-work, expertise and commitment demonstrated by intermediaries, even in the most trying of times.
How the rental sector bounced back
Recent data collected by Hamptons shows how the rental sector bounced back; it showed that landlords made up 15% of all sales agreed in November, the highest figure for four years. Investors were said to have bought around 134,000 homes in 2020, up from the 133,000 bought in 2019. The average price paid for a home by a landlord in November was £180,000, which is around £80,000 less than that paid by an owner-occupier.
In contrast to talk at the start of 2020 - which suggested that landlord purchases would fall significantly – this data demonstrates just how quickly things can change and the continued importance attached to the private rented sector, of course, largely down to the stamp duty tax changes.
We have achieved record breaking levels
Like many specialist lenders, we received record-breaking levels of business throughout the late Summer and Autumn months. This meant bringing people back from furlough quickly, recruiting new staff and redeploying parts of the team to provide advisers and their clients with the best chance of completing before next March’s stamp duty holiday deadline and with a view to managing increased levels of business in 2021.
We have already doubled the rate of offers issued as a result of the recent changes made and our aim is to continue hitting this target. There will be an additional focus on completions during January 2021, with a major focus on releasing three times our normal level of funds throughout February and March.
At the same time as working on existing pipelines, lenders also have to ensure that they stay focused on new loan origination. Thankfully, an array of available remortgage offerings across the residential and BTL markets should help provide advisers with plenty of competitive product solutions to build a sustainable flow of business into Q2 next year.
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