An insight into the BTL market for professional landlords
Andy Hallett, director of real estate finance, Metro Bank | 07:15 Friday 30th June 2017
It's fair to say that the buy-to-let (BTL) market in Britain is going through a transformational phase, possibly the biggest in its history.
Over the past 12 months, changes to tax relief for BTL landlords and the new stamp duty levy on investment properties – announced in the 2015 summer Budget – have become a reality. What's more, Brexit and the general election – as well as affordability changes proposed by the PRA – have added a further layer of uncertainty to an already complex BTL landscape. Since April 2016, Metro Bank has seen a significant increase in both amateur and professional investors looking to own properties and borrow through incorporated entities – typically limited companies – as the restriction on interest relief does not apply to limited companies.
In key property hotspots and commuter towns, we continue to see demand for properties outstrip supply. However, the easing of permitted development rights has resulted in additional properties entering the rental and first-time buyer markets. According to the Halifax Price Index, overall UK house price growth has stalled recently (average house prices across the country actually fell by 0.2% in the three months to April 2017 – the first quarterly fall since 2012) and with the added constraints of stricter affordability criteria and housing market activity, prices are likely to be weighed down somewhat over the coming quarters. However, this should feed through into improved demand in the rental sector, as occupiers gravitate towards renting rather than buying – another potential opportunity for portfolio landlords to expand.
At Metro Bank, we have responded to these changes by refreshing our professional BTL range to meet the needs of an even broader range of customer – from a first-time, single-property investor to a professional landlord with a portfolio of rental properties. Our loans are available to individuals as well as limited companies and through our dedicated relationship management and individual underwriting approach, we remain strongly committed to this sector and keen to support both existing and potential customers with their borrowing requirements.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Monese urges holidaymakers to shop around for their bank to save money abroad
Brits travelling abroad have been encouraged to save money by shopping around for bank accounts...
Tandem introduces healthy balance feature
Digital bank Tandem has announced the launch of a new healthy balance notification feature on its banking app...
The Access Bank UK joins Bacs
The Access Bank UK has been announced as the latest brand to join Bacs Payment Schemes Limited (Bacs)...
Nearly 75,000 SMEs supported through BBB programmes
The British Business Bank (BBB) has reported that the total stock of finance provided through its programmes in the last financial year rose by 33% to £12.25bn...
Close Brothers’ banking division reports 6.6% loan book growth
Close Brothers Group PLC has revealed that its banking division has seen a 6.6% growth in its loan book in the 11 months to 30th June 2018...
Leeds introduces two-year fixed rate BTL product
Leeds Building Society has launched a two-year fixed rate buy-to-let (BTL) mortgage product as part of a wider refresh of its 70% LTV BTL range...
Just 20% of Brits would opt for a challenger bank
Only 20% of UK residents would opt for a challenger bank if they were opening a new account today, according to research from Equifax...
Santander to form digital investment banking team
Banco Santander has announced that a new digital investment banking team will be formed within Santander Corporate & Investment Banking...
Metro Bank introduces developer portal
Metro Bank has launched a new developer portal for FCA-registered third parties wishing to build services on top of its APIs...
Wesleyan Bank appoints new head
Wesleyan Bank has appointed David Brownbill (pictured above) as its new head of indirect sales...
Arbuthnot announces profit surge
Arbuthnot Banking Group has reported a half-yearly profit before tax of £3.5m for the six months to 30th June 2018, up from the £2.5m recorded during the same period last year...