Speaking at Mortgage Business Expo in London this morning James Chidgey, senior manager corporate accounts at Nationwide and The Mortgage Works, said there was huge opportunity for brokers in the buy-to-let sector.
He said: “I wouldn’t want to give the impression that there is a boom as the market is being held back by moderate to weak housing supply...but if you are not already doing 15-20% of your business in buy-to-let you are underperforming in that sector.”
TMW estimates there are now 22 buy-to-let lenders actively lending in the market, up from between six to eight at the end of 2009.
And the lender forecasts that buy-to-let lending has the potential to grow to £20bn in the next two to three years, though Chidgey said this level would be dependent on another large lender entering the market.
“We are seeing landlords adding to their portfolios and also refinancing existing mortgages so there is active investor demand and many opportunities for brokers,” he said.
Chidgey said brokers could take advantage of this by establishing referral relationships with lettings agents.
“We are seeing more intermediaries forming alliances with lettings agents and estate agents because that’s where you find the landlords,” he added.
He warned brokers getting into buy-to-let must “have empathy” with the complex regulatory and tax responsibilities of landlords and should ensure landlord clients understood them properly.
