What positive can we find for the buy to let market at this current time?
So there is one positive from the current crisis; it will end. At some point. We have just got to work together to get through this as lenders, brokers and landlords.
Many of you will have experienced the credit crunch which turned into a financial crisis. History shows you that us humans have faced a whole range of crises in the past. And we got through it. So that is my one positive. We will get through this and there will be opportunities in the buy to let market in the future, albeit these may be a bit different to the past. It all depends on whether the sharp impact is short or not.
Tenants will still be in their buy to let properties. There will be landlords who see the market as an opportunity to expand their portfolios. Most landlords have bought property for the longer term.
What can you do?
The key is to talk to your clients during this crisis so they stick with you in the future. On top of this, and something to bear in mind throughout this period, is that fundamentally the demand drivers of the buy to let/private rental sector are not going to change. Tenant demand will remain strong and landlords, as long as they are looking at the long-term, should continue to see property investment as a strong asset class.
That will not change, and once we get through this crisis, the sector may be different but it will be there.
This article first appeared in Mortgage Introducer.