What are the largest challenges for brokers in 2016?

What are the largest challenges for brokers in 2016?

What are the largest challenges for brokers in 2016?

The latest Shawbrook Broker Barometer suggests that upcoming regulatory changes are to be the greatest challenges facing property investors in the coming year.

Issues

With over 300 brokers responding to the survey, 50% said they believed regulation was the key issue that would impact most on their clients. 21% said that a change in interest rates could be the most important change, with 10% believing additional licensing would present the largest hurdle to a successful year.

Looking at their own business, brokers said that they were most apprehensive about an increased FCA governance (39%) and further lending barriers (26%) in the sector. Brokers are unsurprisingly sceptical about the upcoming stamp duty levy, with 80% believing the changes will have a negative impact on both the housing market and the lending sector.

Positivity

Despite these challenges, there is a positive mood amongst brokers. 85% of those questioned said they are confident that their business will grow throughout the year. 54% said that the new help-to-buy shared ownership scheme will have a good impact on the market, with 63% also in favour of the new London help to-buy scheme. 75% feel that the Government’s pledge of 400,000 new homes by the year 2020 will give a much-needed boost to the market.

‘While it is obvious that 2016 will see some big changes in the Buy-to-Let market, it appears that brokers are not buying in to the commentary that the market will suffer,’ observes Karen Bennett, Sales and Marketing Director at Commercial Mortgages.[1]

‘The majority of our broker partners are confident that the market is one in which their businesses can grow and BTL presents many opportunities to investors. Lenders, brokers and customers will have new factors to consider but the outlook for 2016 remains positive,’ Bennett added.[1]

[1] https://www.propertyreporter.co.uk/property/what-is-the-biggest-challenge-for-property-investors-in-2016.html

 

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