Brokers warned not to disregard new BTL business

Brokers warned not to disregard new BTL business

Brokers have been warned that they may miss out on new business when the market enters a hiatus period as lenders and brokers concentrate on completing existing loans before the Stamp Duty deadline.

From Foundation Home Loans' analysis of market activity, a period of assessment or reassessment is taking place as existing landlords, as well as those who have been considering buy to let investment, decide on their next move.

According to Simon Bayley, FHL's Commercial Director, the market is currently very busy ensuring existing business completes on time, however as any new funding on property purchased from this point will attract the new stamp duty rates, there could be a danger that new business might be ignored.


Simon Bayley said: "There is a real danger that focus for brokers has switched from business acquisition to business completion during this period. Of course, completing existing loans to beat the stamp duty deadline is important, however I would urge advisers not to lose sight of generating new business. Landlords, both experienced and new, have had time to assess and calculate the effect of taxation changes and SDLT and, from what I can see, are ready to buy where they can see capital appreciation and/or sustainable rental yield.

At FHL, demand for limited company BTL products is increasing, as more landlords understand there is a way to protect profitability within an SPV. So, there is new business out there. However, instead of waiting for the phone to ring, intermediaries will need to be proactive in their new business activity to ensure that they do not have a fallow month."

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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NathanGreen
NathanGreen 16 Jun 2016

Seeing that the tenants are quite satisfied with their landlords and the properties is indeed great. I wonder, though, what is the situation in London alone? The tenants face sky-high rent levels in the...

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AndiMur
AndiMur 15 Jun 2016

TheGuardian published the same forecast. But on the other hand, professional brokers express different opinions. According totranio.com, an exit from the EU would not affect the demand/supply imbalance...

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Gary Holmes
Gary Holmes 14 Jun 2016

Having a professionally completed inventory at check-in and check-out is clearly (to me at least) of minor value. Tenants make un-authorised modifications and/or walk off with items that belong to the

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Violet Gibson
Violet Gibson 14 Jun 2016

Cautious people think buying off-plan is reckless, but over the past few years investors have literally made fortunes.Pre-release prices have obvious benefits for the developer, who gets instant finance...

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Kate Windleton
Kate Windleton 14 Jun 2016

An interesting research indeed. I guess that is in complete contrast with the United States where people often move from one coast to another. It will be interesting to hear the trends for people moving...

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NathanGreen
NathanGreen 14 Jun 2016

I think it all depends on the market conditions and how well your company is doing. You will agree that you can't demand more when you're killing yourself just to hang in there. Sometimes you need all

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ChristinaReedUK
ChristinaReedUK 13 Jun 2016

What does "detecting a bad vibe" mean actually. I've had certain vibes like these and yet have always found a reason , if there's any, why I don't like a certain property. The property maintenance might...

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keybanks estates
keybanks estates 08 Jun 2016

Great News for first time buyers, about time two!

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NathanGreen
NathanGreen 07 Jun 2016

I agree with #6 - you should maintain your garden according to the target buyer. One thing is universal, though - cleanliness and order. Having the yard clutter-free and clean will help people who do enjoy...

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NathanGreen
NathanGreen 06 Jun 2016

I will always say that London is overrated. Sure it is the capital, but it's too stuffed in there. It's more of a business city to me.

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Paul
Paul 25 May 2016

Estate agents are pathetic when it comes to fees. They have this 'I had to do it at 1% because that's what the others were quoting' mentality. We are the most expensive agents in our area, charging double...

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