ARE WAITING WHETHER THE DATE WILL STONE BUT THEY’RE DOING PREPARING

Some are ahead of the curve, with 40% of those who participated in the Landlord Leaders report saying they had already invested in environmental upgrades, while 35% plan to do so in the near future. Not only that, Adrian tells me that professional landlords who are looking to expand their portfolios are considering buying energyefficient properties that already have an EPC rating of C or above. “Sustainability is very much on their agenda, but the professional sector needs and is waiting for confirmation of whether, and exactly how, the new EPC regulations will be implemented, and if there will be any exemptions to the rules. As a lender, we also want to know so we can support these landlords through the journey.”

Financing future demand

While professional landlords are keen to continue investing in BTL, is there enough finance available from BTL mortgage providers to support these aspirations?

Adrian believes there is indeed plenty of product choice, albeit a lot of them are fairly similar. He also notes that lenders who don’t offer product transfers for landlords coming out of their initial fixed-term BTL mortgage might struggle to retain their customers, as borrowers tend to look for this extended partnership with their lender. Ultimately, this boils down to supporting landlords in the long term and building a level of trust with them. “Being able to support landlords at the end of their product term brings additional value and has always been a big part of our model,” says Adrian.

As for the future of the BTL market, Adrian is confident that the demand for private rental homes will increase in the near future as people continue to struggle to get onto the housing ladder— particularly first-time buyers following the end of the Help to Buy scheme. “More people will continue to turn to the private rental sector, but what they demand is high-quality accommodation to live in. The professionalisation of the sector supports that, because those landlords understand the demand, and they have the revenue and the know-how to provide that accommodation.”