The Bank of England’s Prudential Regulation Authority (PRA) introduced the changes, designed to improve the standard of business by encouraging more responsible lending, in October 2017.
While the move has led to some landlords exiting the market, it has undoubtedly created a more “professional” sector. And, with rising numbers of people now renting - there’s been a 75% increase between 2007 and last year - there remains a huge demand from tenants.
The past year has witnessed a large scale evolution of the buy-to-let market, with landlords with multiple properties looking to invest in different types of properties such as Houses in Multiple Occupation (HMOs) or semi-commercial property, among other tweaks to their portfolios.
In more complex cases, mainstream providers may be unable or reluctant to land. However, specialist lenders like Together are in a great position to fill this void. We have a strong reputation for our common sense lending, and have been recognised as a leading finance provider in the buy-to-let sector, having won numerous industry awards for our buy-to-let offering.
Our underwriters in this field have a vast knowledge of the market, and were well prepared long before the regulatory changes came into place. Since then, the team at Together has worked closely with our broker partners to clearly explain our products and processes.
A study published in August by estate and letting agency Your Move suggested more than half (52%) of landlords were optimistic about the future of buy-to-let, compared to just 16% feeling negative about being a landlord, despite the stricter regulation brought in a year ago.
Since then, we’ve been working hard to make sure more of landlords and investors, including those with multiple properties, as well as those wanting to secure finance on HMOs or semi-commercial properties. We’re committed to enhancing our offering in line with introducers and customers working in the buy-to-let market as it continues to evolve.
