Latest Landlord News by: Madalena Penny
The Chancellor’s announcement last week reducing the amount of stamp duty levied on multiple buy to let properties has prompted some increase from lenders.
Metro Bank will be following Santander and Yorkshire Building Society into the Buy-to-Let lending route with Skipton Building Society returning to the market after their 2-year absence.
Research conducted by The Mortgage Works recently revealed further optimism in the private rented sector indicating 51% of mortgage brokers they surveyed believe the sector would attract new landlords throughout this year. Only 24% thought they would see a fall in the numbers of new landlords entering the sector. A further 48% could see seasoned landlords adding to their current portfolios and the overall picture indicates expansion.
It’s a slow start to recovery, and products, which although are far off their 2007 numbers are beginning to crawl, albeit slowly back onto the market.
The Chancellor’s commitment to stimulate available housing stock by boosting confidence in the buy-to-let sector could well look like it could pay off, with similar lenders following suit.
Head of products at Skipton Building Society, Kris Brewster said:
“Thanks to our prudent approach to lending, buy-to-let has always been a valuable and high performing part of our mortgage portfolio. However, we decided to temporarily cease offering buy-to-let loans in 2009, as a cautious step to protect the business from the uncertainties facing the markets and economy at that time.
”However, with evidence that the housing market is beginning to stabilise, albeit with the potential for further limited house price falls later this year, we believe it’s now appropriate to make a controlled, low risk return to this space.
“Therefore, we have decided to offer a set of straightforward and competitive products which we hope will appeal to both existing landlords and new ones hoping to make the most of the investment opportunity this sector represents.”
The middle of the year will be a major gauge as to the rest of the years BTL potential. Kensington has just released an 85% LTV, BTL mortgage at 5.99% interest with a 2.50% arrangement fee, which is expected to be a hit for landlords looking to expand.
BTL insurance and tenant products aplenty are also indicative of the expansion the private rented sector is experiencing with a number of adapted services on offer to both landlords and tenants.