Ensuring a successful buy-to-let offering in 2021

However, we can look ahead to 2021 with our eyes wide open. Generally speaking, many businesses are better prepared for Lockdown 3.0 and the roll-out of various vaccines offers welcomed light at the end of the tunnel. We can also take great solace from the fact that the housing market remains ‘open for business’.

The resilience and appetite shown throughout the housing market has been nothing short of remarkable. Lenders, distributors and intermediaries have certainly played their part by adapting and innovating to better support ever-changing borrowing requirements in a safe and responsible manner. This has certainly been evident in the residential mortgage space. According to recent Bank of England Money & Credit data, the number of mortgage approvals reached 105,000 in November, the highest level since August 2007, with net mortgage borrowing also increasing to £5.7bn.

The buy-to-let market was also buoyant throughout the second half of the year and it’s great to see some of this confidence continue into the new year. Figures from Property Master outlined that almost half (45%) of landlords are optimistic about the buy-to-let market in 2021. In contrast, 29% of those surveyed were pessimistic about the buy-to-let market in the coming year. The data also showed that an estimated 43% of landlords intend to purchase more property in 2021, with the same percentile outlining that they intend to retain their current number. 10% of landlords plan to exit the buy-to-let market in 2021, while 70% detailed that they will not be selling any properties this year. In addition, a further 13% revealed that they were undecided. Furthermore, 54% of landlords surveyed thought that buy-to-let mortgage rates would stay the same, as opposed to almost 38% who thought they would increase further.

Landlords will undoubtedly face their fair share of challenges over the course of 2021. Having said that, as underlined by almost half of landlords still intending to bolster their portfolios over the course of the year, a wide variety of property-related opportunities will continue to present themselves for proactive investors and intermediaries throughout the UK. Opportunities which will be further supported by a vibrant and competitive remortgage market which will allow landlords to refinance and release equity to support their ongoing portfolio needs.

These factors serve to highlight the value of a good, professional advice process. And having strong relationships in place with landlord clients and specialist mortgage clubs – who can provide that additional level of support where necessary in what will undoubtedly be a more complex lending environment – will prove vital ingredients in any successful buy-to-let offering over the course of 2021.