Noting that intermediary buy to let sales are on the rise, he added:
“Increasingly, customers will need and want to turn to brokers for whole-of-market advice. There’s a historic 60/40 split between direct and intermediaries – and I think the market will settle around 75/25. It’s a good time to be a broker, as you’re much needed in the market place.”
Following this, as part of an interactive questionnaire with the audience, he asked the intermediaries present whether they thought lending in the buy to let market would continue to grow in the next two years.
The audience were split unanimous in their response, with 42% saying they thought the market would grow but 33% expecting a decrease.
Boden explored the drivers in the market that could affect this growth, with a growing population and more ambitious landlords behind the increase in lending.
He added:
“A recent survey showed that 29% of landlords say that they are looking to increase their portofolios, so it’s not a market that’s looking to slow down.”
Tax and regulation changes were at the forefront of things to consider when looking at how the buy to let market could alter in the coming months.
“Most landlords will take this in stride,” said Boden. “Many will still see buy to let as being an attractive investment, where they can continue to drive returns through rentals.”
He added, however, that the changes may have some ‘limited’ impact on the lower end of the market, in terms of the ‘pension planner landlords’, and that the market may see a shift towards limited company purchase.
Concluding, Boden added that it was true that complex tax changes had changed the face of buy to let, but that as a ‘continually growing market’, it still offered a wealth of opportunities for brokers, adding that:
“Growth is driven by a number of factors, driven by housing demand and tenure choice.”
