The Summer of Love for Landlords

Stormy times for landlords may be giving way to calmer waters

I think we can all admit the past few years has been a bit of a rollercoaster for landlords. With the Bank of England hiking interest rates, mortgage costs have shot up. The base rate hit a 15-year high of 5.25%. But, despite the doom and gloom, there is a sense of optimism just around the corner. After speaking to landlords earlier this year, we found that three quarters of them feel pretty upbeat about what's ahead.

They’re feeling much better about the property market and continue to feel this positivity as we head into the second half of the year. Things have been rough, but there’s a real sense that 2024 will be better than the years before.

They want to expand their portfolios too...

That same landlord research also revealed that 26% of them are gearing up to add more properties to their portfolio in 2024. Whether they’re eyeing single properties or multiple units, it’s clear that landlords are looking to grow their investments.

Areas like Chelmsford, Tonbridge, Guildford, and Redhill are becoming hot spots for buy-to-let investors. More people are moving out of London, looking for cheaper rents and a better quality of life, and these commuter towns are in high demand. If your clients are looking for new investment opportunities, these areas are definitely worth exploring. The high demand and great transport links make these places perfect for getting a solid rental yield.

We have recorded a 52% nationwide uplift in the volume of landlord mortgage applications in the last 6 months, compared with the preceding 6 months . We have recorded growth across all regions of the UK. There have been some acute uplifts within specific localities, including the following;

• England North East: 121% uplift in applications
• England South West: 105% uplift in applications
• East Anglia: 84% uplift in applications
• Yorkshire and Humberside: 70% uplift in applications

The Bank of England has finally cut the base rate of interest!

On the whole, it seems things might be getting even better for landlords. The Bank of England’s latest forecast points to a stronger economy with lower unemployment and inflation rates than we expected. After months of speculation, the base rate of interest was finally cut to 5% at the beginning of August. This news was welcomed by many as it was the first time the rate was cut since March 2020.

This drop in borrowing costs has got landlords excited. Lower mortgage expenses while rental yields stay steady sounds great, doesn’t it? In the wake of the rate cut, you might find more landlords eager to speak to you and discuss expanding their portfolios to keep up with the growing demand for rental properties.

TML will help give your clients a summer to remember

With the Buy-to-let market heating up this summer, we’ve got your back with your clients. Our team is here to help you make the most of this upbeat market, offering solutions just right for them.

Chris Kirby, our Head of sales, says it best: “For landlords looking to expand or remortgage, broker advice is key to finding the best opportunity in the coming year.” With our expertise and dedication to securing mortgages that work for each individual, you can confidently support your clients in a successful and rewarding summer in the Buy-to-Let market.