PODCAST: BUY TO LET MARKET

Part 1: 'The Buy to Let market is performing better than generally perceived'

In the first part of the series, Neil Cadwallader, Business Development Manager (BDM) at Family Building Society, said the Buy to Let market had faced "tumultuous changes" in recent years but was "in better health than generally perceived."

He noted fewer rental properties available, with rising tenant demand and higher rental yields. "The Buy to Let market is alive and kicking," Cadwallader added.

Stuart Heavens, also a BDM at Family Building Society, said remortgaging was driving market growth, despite a dip in purchases. He mentioned tax and legislative changes, leading landlords to carefully assess new investments, but the remortgage market remained strong.

Both highlighted improved product choice and the appeal of stagnating property prices, particularly for portfolio landlords.

Part 2: 'Accountants have had a massive bearing on the Buy to Let market'

Following on, Cadwallader, highlighted how tax changes have led many landlords to switch to limited company structures for tax advantages. He noted that older landlords were transferring properties to their children using gifted equity.

Stuart Heavens said landlords were diversifying into HMOs, multi-unit blocks, and semi-commercial properties due to tax changes, rising rates, and cash flow pressures. He encouraged brokers to upskill through industry events and CPD to capitalize on opportunities in the evolving Buy to Let market.

PART 3: 'Landlords should start EPC upgrades now'

To conclude, Heavens said landlords must improve the quality of their portfolios, especially with the proposed Renters’ Rights Bill and the goal for rental homes to achieve an EPC rating of C by 2030.

He advised landlords to start upgrades early to avoid rising costs as demand for builders increases. Furthermore, he suggested funding options like second charges, further advances, or remortgaging to cover these expenses, highlighting the Family Building Society's Buy to Let Offset mortgage.

Neil Cadwallader added that landlords need to make portfolio improvements, and lenders would support them through this process.