Broker buy-to-let business remains buoyant as most say landlords are looking to expand

58% of brokers operating in the buy-to-let space have more landlord clients who want to expand their portfolios than sell properties, according to new research from United Trust Bank.

Feedback from brokers who took part in the research was that whilst the buy-to-let market is not as buoyant as it was before interest rates rapidly increased, there are still lots of opportunities with activity in the market not as poor as often suggested.

When asked if their buy-to-let business had declined in the past six months, 60% of brokers responding disagreed, and only 32% of brokers said that most of their buy-to-let business was product transfers.

However, 61% of brokers felt that landlords with just one property were more likely to exit the market than those with buy-to-let portfolios.

Matthew Arena from Brilliant Solutions went as far as saying that “Larger portfolio landlords are very positive. They are cash rich and waiting for opportunities.”

65% of brokers said that landlords expanding their portfolios were often considering more unusual and higher yielding properties including HMOs and multi unit blocks (MUBs). 

One broker from Surrey said, “Clients are looking for more quirky properties”, whilst another broker from Bucks said “Corporate lets – this market is growing”.

Buster Tolfree, director of mortgages at United Trust Bank, commented: “Just as we’re finding in the residential market, mortgage brokers are increasingly helping landlords with specialist buy-to-let mortgages either because of the properties they’re buying and refinancing, or their own circumstances. The great news for brokers is that there are a growing number of specialist mortgage lenders, UTB included, which can cater for them.

“Even more pleasing is that most brokers are still finding opportunities in the buy-to-let mortgage space, and this reflects our own experience over the last year. Landlords are looking to acquire more unusual types of properties and in locations which may not suit homeowners but nonetheless make great rental properties, for example flats over or next to commercial. These purchases often deliver higher yields than a traditional three-bed semi and help to mitigate the higher cost of borrowing.

“At UTB our buy-to-let mortgage sales are, to date, c.35% higher than for the whole of 2023, and applications c.53% up in the same period which shows that there’s demand and that brokers like what we’re doing.”