The expected result of this is a proliferation of large scale rented projects financed by institutional investors.
Meanwhile recent reports have highlighted that landlord optimism is at a three year high with BTL landlords acknowledging the improved availability of buy-to-let finance and better trading conditions generally – fuelling growth in the BTL market from both existing landlords and new entrants.
Eddie Goldsmith, Senior Partner at Goldsmith Williams, observed:
"BTL landlords will find the private rented sector a tougher environment if the government’s plans reach fruition."
"Often amateur landlords and in particular 'accidental landlords' - typically those climbing the housing ladder who are unable to sell - are unaware of the full extent of their legal obligations as a landlord. Indeed for many these obligations only become apparent when problems occur.
"We developed our GW LET (Landlord Empowerment Team) service in response to the lack of specialist help for these less experienced landlords. Over the years we have acted for countless such landlords helping them understand and act upon these legal obligations. The entry of large scale institutional investors to this market place is likely to drive increasing professionalization. This will impact upon the amateur and 'accidental' landlord who increasingly will be expected to raise their game.
"Brokers and other advisers of these BTL landlords can play their part in raising standards across the industry by leveraging their networks to recommend firms who are able to offer specialist legal services."
