Brokers told not to ignore new BTL business

Brokers are being warned that they could lose out on potential business when the market cools after April 1st.

With landlords, lenders and brokers all looking to complete deals before the increases in Stamp Duty come into force, the market is experiencing something of a boom.

If you are a looking to invest before the deadline, then it is likely that you have experienced extra competition.

However, some existing landlords who have no intention of investing are taking stock of their assets and are deciding on their next move.

Analysis reveals that the market is presently busy making sure that existing business is completed on time. This said, most funding on property purchased from this time will incur the new rate of stamp duty. This is raising fears that new business is being ignored.

Brokers told not to ignore new BTL business y

Brokers told not to ignore new BTL business

Simon Bayley, FHL Commerical Director believes, ‘there is a real danger that focus for brokers has switched from business acquisition to business completion during this period. Of course, completing existing loans to beat the stamp duty deadline is important, however I would urge advisors not to lose sight of generating new business. Landlords, both experienced and new, had had time to assess and calculate the effect of taxation changes and SDLT and, from what I can see, are ready to buy where they can see capital appreciation and/or sustainable rental yield.’[1]

With demand for limited company buy-to-let products on the up, more landlords are starting to understand how to protect their profitability. Of course, extremely high demand means that any dip in activity following the tax changes is likely to be muted. However, intermediaries will have to be proactive in their transactions to make sure that they do not suffer a slump.

[1] http://www.propertyreporter.co.uk/finance/brokers-warned-not-to-disregard-new-btl-business.html

 

 

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