Simon Bayley, Commercial Director at the specialist lender, believes that choosing the right area to buy a house in order to maximise growth will be the biggest hurdle, especially after the changes to stamp duty and the introduction of the Mortgage Credit Directive.
“Much doom and gloom has been expressed that the changes to tax relief and stamp duty will make it more difficult for landlords, particularly new and amateur landlords,” said Simon.
“But at a time when there is such choice of funding and the alacrity with which the industry has come up with potential new funding choices like limited company BTL (buy-to-let) products, funding is not really going to be the issue.
“Instead, landlords looking at acquisition, will be working harder to find areas where property prices are not overinflated and can generate rental yields which make sense.”
Simon accepts that the new regulations will create some barriers to entry, but believes the most important mantra for 2016 will be ‘location, location, location’.
“In reality, it will be about making sure the sums add up and that has everything to do with the geographical areas they choose to buy,” added Simon.
“The BTL market will continue to be a very competitive one in 2016, which can only benefit landlords and their advisers, and we will continue to champion first-time landlords as we have since we launched.”
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