The buy-to-let (BTL) sector has seen increased numbers of professional landlords entering the market as of late, lenders revealed.
Speaking on a panel at Mortgage Business Expo (MBE) London, Mike Cook, chief mortgage officer at MFS, Dan Clinton, head of specialist lending at TMW, and David Whittaker, CEO at Keystone Property Finance, all noted a shift in landlord demographics.
Clinton said: “There is more of a market for professional landlords – and it is harder for first-time landlords to find their way in.”
Whittaker agreed with this shift, adding: “80% of what arrives at our door is limited company structures.
“New landlords are more professional and they are increasingly younger.”
This clear shift in landlord trends has also resulted in the increased diversification of many investor portfolios.
Cook said that the rise of the professional landlord has seen the majority of ‘dinner party’ landlords exit the market.
He has seen many dinner party landlords replaced by holiday let investors, as people are increasingly drawn to more profitable options.
Whittaker also noted the rise in popularity of houses in multiple occupation (HMOs).
He said: “Many landlords have more HMOs in their portfolio […] now that many more ‘ordinary properties’ are now deemed as HMOs.”
