There are many challenges in the industry. Interest rates or fluctuations of interest rates and government intervention are putting pressure on landlords and their consultants to adapt to rapid changes.
But there are many opportunities. According to the State House Landlord Association’s research, each rental property still has 21 potential tenants.
The government hopes to solve the shortage of property through its latest proposal on the framework of the national planning policy, and consults the legislative change, aiming to help local authorities fulfill the commitment of 1.5 million houses. However, this does not solve the shortage of houses today, so we want to see the demand for rental properties continued to increase for a period of time, thereby further increasing the rent.
There are a lot of consultants to master and learn
Although it is not good for renters, rising rents are helping some landlords to maintain their investment portfolios, meet the burden on demands and solve other challenges.
The increase in stamp duty surcharges announced in the recent budget is an additional cost to increase the landlord of their investment portfolio. This is a surprising move that is expected to generate a small amount of income, so I think this is another move to slow down the number of new property purchased by the landlord.
We are moving towards a private lease department, which is composed of professional landlords with good business reputation. When evaluating the opportunity of any property investment, these landlords will consider additional expenses, such as stamp duty.
Method of operation
Legislation changes, such as the requirements of the Energy Performance Certificate (EPC) and the Tennis Rights Act, have also caused professional landlords to consider their operating methods. A positive view is that these views will create a more stable leasing market, and long -term tenants have reduced turnover and blank costs.
There are still new landlords entering the market, and they are not limited by how to become a thing.
Consultants can help their landlords by understanding some emerging changes and guiding customers, especially when reviewing existing investment portfolios.
Interestingly, how to adjust the lending standard to meet the needs of the landlord’s continuous changes. For example, due to the increase in rental profit margins, houses in multiple occupations (HMO) property have become more and more popular among landlords. Now, more and more lenders provide some form of HMO standards.
Moreover, these standards are improving. Many loan restricted the largest number of bedrooms in HMO, but the Handipian trust, Interbay, Market Financial Solutions and other lenders are now infinitely infinite in this regard.
Another area where landlords are getting more and more popular are the auxiliary tenants. This is also known as an external care shell, which is a “careful house”, which means that tenants can live independently, while being washed, dressing, going to the toilet, or taking medicine.
Interestingly, how to adjust the standard for the loan to meet the needs of the landlord’s continuous changes
The third party representative managed this, including adjusting property to meet the needs of tenants. The landlord benefits from the enhanced rent, regardless of the rent, the rental period and rent.
Due to the vulnerability of tenants, this may lead to the problem of loans when granting mortgages. In addition to other issues, if the landlord does not meet the payment, it will have a moral dilemma, and the property must be recovered and notifying the tenant. Professional lenders such as Keystone, TML and TMW will consider the tenants of the Housing Association, where there are no overnight caregivers.
In order to assist life, the consultant will have to turn to expert loan, such as market financial solutions and common lenders, which will consider mortgage loans of these types of property under certain conditions.
Recently, Knowledge Bank has confirmed that the highest standard search in its system is “loan from a limited company”. This is not surprising, because it is now the choice of most professional landlords. What is even more surprising is that in the second place, search is “the first landlord”!
Although it is not good for renters, rising rents are helping some landlords to maintain their investment portfolio
There are still new landlords entering the market, and they are not subject to the idea of past things, but they are deciding on market -based decisions.
Consultants can master and understand the current market. It is worth reading the rights and EPC bills of the tenant, understand the rules of HMO permits, and abide by the lender standards of HMO, Limited, and the first landlord.
The more the consultants understand these key themes, the more valuable they are for professional landlords.
Liz Syms is the CEO of Connect Mortgages
This article introduces the version of December 2024/January 2025 Mortgage strategyEssence
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