"Rather than the actual impacts of policy, what seems to be affecting landlord confidence most is a feeling that landlords are all being tarred with the same brush."
Landlords have told us that they are unimpressed with Government policy and that most of those who voted Labour in the General Election would not do so again.
Nurturing confidence among landlords is clearly key to the health and prosperity of the UK housing market if the sector is to provide much needed accommodation. Our latest landlord survey has demonstrated that it is an uncertain and difficult time for some landlords.
Clearly, what the buy-to-let market really needs is a confidence boost from Government. With a bit of encouragement and support, the sector can continue to play an important role in helping solve the housing crisis.
Our survey revealed that 80% of those who voted Labour wouldn’t vote that way again if they had known that the Chancellor would increase stamp duty on second homes and investment properties.
63% were unimpressed with the Government’s housing market policies so far. 39% of landlords told us that the increased stamp duty from 3% to 5% would affect them a lot.
But, interestingly, 30% said that the increase would only affect them a little and 12% said not at all. Many landlords are seeing the rate raise for what it is, a small 2% rise.
As one landlord said: “2% isn't a big deal if you take a long-term view.”
Rather than the actual impacts of policy, what seems to be affecting landlord confidence most is a feeling that landlords are all being tarred with the same brush. Many landlords have told us that there is a ‘landlord bashing’ narrative in which all landlords are labelled as ‘rogue landlords’.
One landlord said: “The obvious conclusion from the bashing landlords take is that the Government want them out and replaced by corporate landlords, similar to the student market.”
In reality, decent landlords outweigh the bad and the rental market is remarkably robust and thriving. Demand continues to outstrip supply, with many tenants ready and more than willing to rent across the country. As long as house prices are high, affordability will remain a real challenge for residential buyers. As a result, there is always a place for decent, sensibly priced rental properties.
As a result, we are finding that, while some disaffected landlords are sitting on their hands, others are exploring investment opportunities across the country.
It is important that as a sector we pull together to support landlords. Previously, we announced rate reductions, with rates falling by as much as 0.20%. These are not on niche products either, but across our fixed rate range, including standard products, support for smaller landlords and through our innovative range of AVM products. These have proven incredibly popular thanks to the efficiencies and cost savings they can offer.
At the beginning of the year, we expanded our limited-edition range to now include both remortgages and new purchases. This includes standard five-year fixed rate products, available at up to 75% LTV, with rates starting at 4.89%.
By leveraging our in-house technology and broker portal, along with our close relationships with our funders, we are able to identify opportunities and take action very quickly. This means brokers have access to a competitive range of products to support the many landlords still seizing opportunities and making moves in the current market.
The buy-to-let sector has survived countless crises and changing governments over the years and continues to thrive. As a buy-to-let lender we remain committed to innovating to meet the needs of landlords. We are willing and able to support them.
