Fleet Mortgages is an intermediary only lender who caters for both professional and semi-professional BTL landlords, on an Individual or Limited Company/LLP basis, for both regular residential properties, HMO’s and Multi Unit Blocks.

Steve Cox is Chief Commercial Officer of Fleet Mortgages. Here he shares his thoughts about the evolution of the landlord.

Landlords come in all shapes and sizes. From those who have one property to let out and for whom it’s a potential pension pick-me-up, to those for whom it is a full-time job with a portfolio numbering hundreds of properties.

The positive in our sector is that there are excellent buy-to-let mortgage options for all those individuals and everyone in between. We should not forget this because there can sometimes be an assumption that the professionalisation of the sector, brought about by regulatory and taxation changes particularly, has left no room for those who want to invest as part of a diversified retirement planning strategy.

Nothing could be further from the truth, and certainly from Fleet’s perspective, we are seeing a new generation of buy-to-let landlords in their late 30s/40s who see the opportunity that investing in property provides and are beginning to build portfolios.

Disparagingly, back in the day these might have been called ‘dinner party landlords’ or ‘amateurs’ or even ‘dabblers’ like they have money to burn and are taking some sort of ‘punt’ on buy-to-let.

The term ‘dabblers’ sticks in my craw a little when it’s applied to landlords because, certainly ever since the stamp duty hike was brought in and the cuts to mortgage interest tax relief, unless you’ve had a property dropped into your lap which you’ve decided to rent out or you have so much money you don’t know what to do with it, then you’re likely to have taken your property investment decision very seriously.

Can you really be considered a ‘dabbler’ if you’ve put down 25% deposit, paid all the costs that accompany a purchase, and (unless you got in before that 30^th June 2021 stamp duty holiday deadline) paid a 3% surcharge on top of your normal stamp duty rate?

That’s not a dabble at all but a consideration which you are likely to have taken very seriously and which will have resulted in a measured appraisal of what type of property you should buy, where you should buy it, who the target tenants are, what yield you can achieve, and everything else that goes into making that decision.

The important point to make here is that every single landlord started with just one property, and the portfolio players of now might once have been dismissed as ‘dabblers’ when they started.

However, for advisers active in this sector it will certainly pay to understand that what might start off with a two-up/two-down ‘vanilla’ property for a family let, could eventually morph into a portfolio comprised of HMOs, multi-unit blocks, student accommodation, and all kinds of property that might require much more complex financial arrangements on a regular basis.

Of course, again, the point should be made that we have a very active specialist buy-to-let mortgage lending market, with lenders like Fleet absolutely committed and experienced in the needs of portfolio and professional landlords. Whether its properties housed within a limited company or owned in individual names, perhaps it’s a partnership of investors, or multiple properties owned in multiple structures, we are able to support the adviser and help them deliver exactly what the client requires.

In that sense, when the media raise the issue of landlords leaving the sector what they tend not to appreciate is that they are being replaced by highly-committed landlords and they are also having their properties (more often than not) bought by already-established portfolio players, who understand the demographics and the demand there is for rental property for all manner of very good reasons.

There are clearly some obstacles to becoming a landlord, not least financially, and therefore when these are surmounted you are likely to find an individual who is serious about the sector, is in it for the long-term and holds ambitions for growth.

As an adviser those clients are worth seeking out, and holding onto, and it’s worth ensuring you work with a lender who fully understands the sector and can help in all manner of specialist and potentially niche areas. No-one is dabbling here and that’s a real positive for all buy-to-let stakeholders.

At Fleet Mortgages you can contact both an experienced telephony or field BDM who are always happy to help. You can reach your BDM Team on 01252 916800 or by emailing sales@fleetmortgages.co.uk.