Buy-to-let remains viable for bigger operators, lenders say
Adrian Moloney (pictured top, second from right), group lending distribution director at buy-to-let specialist Rely, said their own landlord research showed widespread cost increases, but also resilience among landlords. He said some had raised rents, some were absorbing costs, and others were seeking professional advice.
“Our latest Landlord Leaders research underlines just how stretched the sector already is,” Moloney said. “Virtually all landlords (97%) have seen costs rise in the past year, yet a majority (62%) remain optimistic about operating in the sector.”
The operational burden is also becoming more important. “The immediate priority for landlords is execution,” Moloney said. “Ensuring tenancy agreements, processes and property standards are aligned is no longer a future consideration; it is an operational requirement from day one.”
The buy-to-let market remains viable for some investors, but the direction of travel is towards more professional management and stronger capital positions. Ryan Etchells (pictured top, far right), chief commercial officer at Together, said demand for rental housing remained high despite the regulatory shift.
“While the shift to rolling tenancies and the end of Section 21 represents a significant change, the fundamental demand for quality rental housing remains incredibly high,” Etchells pointed out. “These rules are designed to professionalise the sector and weed out ‘bad’ landlords, but for the majority of responsible investors, the long-term capital growth and steady rental yields still make BTL a smart move.”