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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Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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