In episode 70 of the Growth Series podcast, Andrew Calder, Corporate Account Manager at Accord Mortgages, speaks to Rich Merrett, Head of Strategic Development at Simply Biz about the future of the buy-to-let market.
Rich predicts continued growth in the market, despite strong economic headwinds, as buy-to-let is still seen as a robust investment option by both existing and prospective landlords. Furthermore, he believes buy-to-let property is lucrative as it can appreciate in value over time and generate regular returns.
Andrew then asks about whether the much-predicted urban exodus has happened, or if towns and cities are still attractive to investors. Rich points out that while some people have looked to move to the countryside, the so-called race for space hasn’t been as widespread as has been reported, as young professionals in particular still want to live in urban locations.
The conversation then turns to how rising inflation and the cost of living crisis might affect demand for buy-to-let across the country. Rich believes demand will grow, as many people, especially first-time buyers, will struggle to save for a deposit.
Next, they discuss how lenders can better support the buy-to-let market. Rich praises lenders for doing a great job over the last few years, but says they need to be quicker to spot emerging trends in terms of how people live, work and want to invest their money.
Rich is then asked how advisers can provide a better service to landlord clients, and he says that since the market is incredibly complex, they should keep themselves educated and informed, using resources such as the Growth Series.
Finally, Andrew asks what key information landlords should be aware of in order to be successful in the future. Rich highlights proposed changes in energy efficiency regulations as one key issue, and says lenders and advisers both have a duty to make sure landlords know what’s in store.
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01:15 to 29:01: