Landlords are increasingly motivated to buy properties that require more investment, according to Saffron Building Society’s national sales manager for intermediaries Lee Williams.
In an interview with BTL Insider, Lee explained how he had seen a shift in landlords’ borrowing needs.
Due to changes in stamp duty treatment, the national sales manager discussed how some landlords were more willing to take on properties in need of conversions or refurbishment to attract higher returns.
“At a recent industry event . . . I was in front of a lot of landlords and, what was really clear was that, previously, they had been buying properties to rent out [with] very little work needed [to] build their portfolio that way.
“[What I found was] that they were looking to do more work.”
“They can build the portfolio they want in the mould they want for the long term.”
Lee gave the example of one landlord he spoke to who was keen to buy properties with red ash, an outdated sulfate previously used as a filler material in building construction to raise ground levels.
“This guy knew it would need a fair bit of work, he was a specialist in that area and knew he could make an investment work twice [as hard] for him.
“There are more landlords looking for solutions like that, even if they don’t have that expertise.”
Lee told BTL Insider that the building society was more willing to work with inexperienced landlord developers.
“For example, landlords are looking at new ways to invest,” he said, explaining that they might not have any experience in building, but they have the funds to go towards it and the support network around them to do the works.
