Will the Renters Rights Bill impact Buy to Let mortgages?

UK Property News has recently assessed the impact the Renters Rights Bill might have on the Buy to Let mortgage market, under which Gavin Richardson, MD of MFB Mortgage Finance Brokers, has discussed his predictions.  

Gavin's discussion, with Ian Collins of UK Property News, broadly signaled a prediction of good news.  

A general view of increasing professionalism within the Private Rented Sector, created from both recent and upcoming legislation, has ensured that lenders, both specialist and high street, have retained a confident and positive outlook on Buy to Let lending. 

As such Gavin predicts no significant changes following the Renters Rights Bill's implementation, which is anticipated to take place later this year.  

How lending is structured and orchestrated remains unchanged, with lenders still operating with the view that Buy to Let lending carries no additional risk. Stress test 'affordability' calculations have in place for long time, and lenders now look to base their decisions for larger portfolio Landlords on 'whole of portfolio' assessment, rather than focusing on individual properties. 

Specialist Buy to Let lenders remain, along with other 'High Street' lenders, so all Landlord circumstances, new, old, large and small remain catered for within BTL lending. 

Gavin predicts two further base rate reductions, and lenders will most likely follow this by softening rates, subject to inflation changes or shifts in political sentiment. 

He also suggests that all UK Landlords are undertaking some level of portfolio review, with around 25% acting by either refinancing,  selling, and upgrading. The upcoming Renters Rights Bill, the prospect of EPC minimum standard changes and a possible upcoming shift in the sales market are all factors which are encouraging. Landlords are therefore focusing on their attention to lower yielding properties, poor energy performance, and problematic tenancies, ahead of these changes. 

Generally a positive and stable outlook for Buy to Let lending, with a small percentage of Landlords adjusting their portfolios to ensure they are in the best possible place ahead of the upcoming legislation. 

If you would like to discuss your property investment or portfolio, and the prospect of reviewing some of the above factors, ahead of the incoming legislation, then we would be delighted to hear from you. Please don't hesitate to make contact.