Leading property expert, Kate Faulkner, has highlighted the fact that landlords could maximize their buy to let potential simply by visiting their mortgage brokers twice a year.
Speaking at this year’s Financial Service Expo, Faulkner explained how regular consultations with mortgage brokers could immediately solve most landlords’ tax relief issues.
When speaking about the future of the buy to let market, Faulkner pointed to the fact that landlords and the intermediary market appear to have a lack of understanding when it comes to getting to grips with current market conditions and letting rules and regulations within each country and region. Brokers also have a responsibility to ensure landlords are receiving the right levels of advice, noted Faulkner.
“It is becoming more difficult for landlords to make money,” she said. “It’s certainly harder to get deals in the current market. I’ve never seen stock levels so low. Letting and estate agents are having a seriously tough time trying to get stock, it’s just not there.”
While Faulkner said she thought there would be greater concentration on capital growth in the future she said that this would inevitably be restricted within certain areas where house price growth remained low.
“What I would love to see and what I encourage all landlords to do now – because they have to build that capital growth in from the start – is to acquire properties they can bring back to life or just build,” she said. “Use cash where possible and then mortgage the property accordingly. I personally believe that nobody should be allowed to invest in a buy-to-let property until they have seen an adviser.”
The lack of specialist buy to let conveyancing solutions offered by solicitor firms was also held up by Faulkner as having a very negative impact on landlords. She argued that the conveyancing solutions offered to landlords do not match their needs and as such many legal firms are failing their buy to let clients.
She added: “We do lots of seminars up and down the country and we believe that 95% of landlords hold property in an incorrect legal way. We have to work together as an industry to ensure that landlords are properly represented and not a good enough job is currently being done on their behalf. It is outrageous that the same conveyancing is being done for a buy-to-let investor as for a first-time buyer.”