Properties with persistent rental weakness are likely to become less attractive to lenders, potentially leading to tighter criteria or reduced availability of finance. The direction of travel points towards a more professional landlord base, with greater emphasis on sustainability, compliance and asset quality.
“Portfolio assessment in this context is likely to place greater emphasis on sustainability of income, resilience to void periods, and overall compliance with evolving regulatory expectations.”
That shift is also being reflected in how brokers approach portfolio clients. Amar Dhanota (pictured, top left), director at London F-S, said the shift towards a more complex and professional landlord market is reinforcing the role of advice-led brokerage.
“I think the role of brokers will become more valuable. For us, it’s never been transactional and just sourcing a mortgage. It is about helping clients make better decisions in a market that is becoming more demanding, more professional and, in some cases, more polarised,” she said.
“The landlords who do well will likely be those who are prepared, realistic and properly advised. The investors who grow may well be the ones with stronger systems, better capital backing and a more deliberate long-term strategy.”