"Brokers are also seeing increased enquiries from landlords which demonstrates that the value of professional advice should never be underestimated "
There is still a lack of awareness amongst property investors of the changes made to buy-to-let underwriting standards in September 2017, according to Shawbrook research.
28% of brokers surveyed cited that their clients were not aware of the changes at all, with 61% reporting that their clients were aware of the PRA rules themselves, but lacked enough understanding of changes that were made.
This is despite brokers listing the ‘knock on effects of the PRA/FCA regulations’ as the top issue likely to impact their clients in 2018.
Despite the changes meaning stricter rules for portfolio landlords, brokers say the new regulation is having a positive impact on business.
44% of brokers reported an increase in portfolio landlords approaching them following the changes to the PRA requirements, with 58% of brokers believing the changes should help their business, particularly as landlords seek further guidance on the changes.
Karen Bennett, managing director of commercial mortgages at Shawbrook, commented: “The Broker Barometer has highlighted the critical need for more education in the investor market regarding the impacts of regulatory change. The benefits of increased awareness are two-fold.
"Firstly, it should help prevent clients from sleepwalking into a problem and allow them to adjust their investment strategy accordingly. Secondly, according to our research, brokers are also seeing increased enquiries from landlords which demonstrates that the value of professional advice should never be underestimated and that there are still opportunities for business growth.
"We aim to continue to support the broker community with information on all aspects of the regulatory landscape moving forward, and look forward to working with industry bodies such as the NACFB in this regard.”