‘Fundamental’ BTL market ‘cannot be destroyed’, says Fleet’s Cox
Attracting the next generation of landlords to the buy-to-let (BTL) market will be key, but the sector is too important to be destroyed, it was said at an industry event.
Steve Cox, chief commercial officer at Fleet Mortgages, spoke at Brightstar’s Specialist Lending Expo and said changes such as the Renters’ Rights Act added another barrier to private rental investment and were making the sector more professionalised.
However, he said: “You cannot destroy the private rental sector. You cannot do it. It’s a fundamental part of our housing fabric.”
He described tenancy demand as counter-cyclical, saying it tended to rise during difficult economic periods when buying a home became harder.
Joshua Elash, chief executive of MT Finance Group, said the BTL market had continued to be resilient.
MT Finance has seen weaker demand across other parts of the market it lends in, but Elash said: “Buy to let has actually been one of the best performers for us as an institution this year.”
Episode 4: New Build: Powered by Partnership podcast from Newcastle for Intermediaries
Sponsored by Newcastle for Intermediaries
He said the perception people had about legislation on the market and how it actually impacted landlords in practice was different, adding that it was “one of the bright spots” this year.
Emily Hollands, head of intermediary sales and distribution at OSB Group, said regulatory changes would become a normal part of the market and the attitudes of younger generations towards property ownership would change the market.
She said some younger people prioritised investing in BTL rather than buying their own residence as a means of generating returns.
“I think the buy-to-let market will continue. I think it will change over the next 3-5 years,” Hollands said.
The panel agreed that raising a deposit to invest in BTL would be challenging for the younger generation, and Rob Jupp, chief executive of Brightstar Group, said this was where the Bank of Mum and Dad could play a role.
Cox said inheritance could create a new generation of landlords, with properties and limited companies being passed down.
