Buy-to-let landlords are showing remarkable resilience and adaptability in the face of change at the hands of the Government, according to the latest figures from Accord Mortgages.
The specialist lender reports that 7% of its business in 2017 came from first time landlords, despite a host of regulatory changes from the Government, including the higher rate of Stamp Duty for buy-to-let purchasers and the reduction in mortgage interest tax relief.
Despite concerns surrounding these changes, new buy-to-let landlords have not been deterred from investing in property. Accord Mortgages began accepting applications from new property investors in July last year, but recorded a peak in applications in November, equating to 11% of the total number of applications it received that month.
Furthermore, over half (57%) of the buy-to-let applications received by Accord in 2017 were from those affected by the new regulations.
Chris Maggs, the Commercial Manager at Accord Buy-to-Let, says: “We have seen a significant demand for buy-to-let mortgages from both experienced and first time landlords this year.
“2017 was a year of remortgaging for landlords, who reaped the benefit of some exceptional mortgage rates, and 2018 is likely to be no different.”
Portfolio landlords with four or more properties accounted for the highest proportion (32%) of applications received by Accord, despite the lender introducing new criteria for these investors in September.
Some 18% of the applications Accord received since April 2017 were from landlords classed as consumers – single property landlords where they or their relatives have previously lived.
Maggs continues: “Last year, Accord, like many other lenders, adapted its mortgage offerings to meet the changing needs of the market. Equally, as new regulation was implemented, landlords have begun to adapt to ensure their business withstands the changes.
“This doesn’t negate the fact that things are still tough for landlords and, hopefully, 2018 will give them some breathing space to take stock of the changes. However, landlords have demonstrated resilience when presented with challenges in the past, and I’m sure that will continue into 2018.”
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