A third of buy to let brokers are still unsure as to how the upcoming changes to portfolio landlord application rules will affect their business, according to new research from Kent Reliance.
31 per cent of brokers are still unaware of the impact of the changes, according to the research which surveyed 200 buy to let brokers. It was also found that 13 per cent of brokers were unsure when the changes would be coming into effect, whilst 46 per cent do not know what exactly is changing.
However, some brokers are more clued in. 54 per cent are comfortable that they understand what the new portfolio application rules are and how they will apply to, and affect their businesses.
A third of landlords, equating to 29 per cent, believe that the new changes mean that more applications will be rejected in the short term. In contrast, 23 per cent believe that the extra administrative burden brought on by the changes will lead to the application process becoming far slower.
The changes will see the introduction of a new minimum underwriting standard for landlords who own four or more properties in their portfolio. They are set to come into practice on 30 September.
Sales director at OneSavings Bank, Adrian Moloney, commented on the findings of the researched, and urged brokers to get up to speed with the changes. He said: ‘Brokers have had to get to grips with a huge amount of regulatory change over the past 18 months. It’s understandable that some are still playing catch up, but with the PRA deadline looming, now is the time to buff up on the new rules and make sure clients are ready to comply. For those that still don’t feel confident in what these changes mean for their business, the time to get on top of it is now.’