Landbay has released further findings from its latest landlord survey, which shows that increasing numbers of landlords are struggling with uncertain market conditions.
The survey found more than 80% of landlords currently view the BTL market as either unstable or unpredictable, with 55.6% describing conditions as ‘somewhat unpredictable’ and a further 26.3% saying the market is now ‘highly volatile’.
Landbay said the results reflected the disruption seen across the market during March and April, particularly around rates and product availability, but added landlords remain engaged with the market and continue to actively seek funding and advice.
The survey found recent market conditions have already influenced landlord behaviour. Over a third (35.3%) said they had reduced activity as a result of global events and rate movements, while a further 21.8% said they had delayed plans altogether.
At the same time, almost half (49.6%) said their confidence in accessing BTL finance had worsened in recent months, although a further 45.1% said confidence had remained the same, suggesting landlords still believe funding remains accessible despite the current environment.
According to Landbay, the findings underscore how advisers can play a key role in helping landlords understand the options available to them in a shifting market. The survey also highlighted concerns around product availability, with more than half (57.9%) describing current BTL product choice as `limited’ while a further 24.8% said choice was now `very limited.’
However, Landbay said product availability has already started to improve in recent weeks, with lenders beginning to reintroduce products and pricing becoming more stable following the volatility seen earlier in the spring. Despite ongoing volatility, almost half of respondents said they had either completed a BTL mortgage in the last month (25.6%) or were currently progressing one (24.1%).
The results also reinforced the continued importance of advisers in the BTL sector. More than 82% of respondents said they used a broker from the outset when arranging their latest mortgage, while almost 10% initially attempted to arrange finance themselves before subsequently turning to an adviser in order to complete the process.
While competitive pricing remains the most important factor landlords look for from lenders, the survey found growing emphasis is now being placed on certainty, consistency and communication.
Over two-thirds (66.2%) said competitive rates remained most important, however 44.4% highlighted certainty once a mortgage offer had been issued, and 36.1% said stability of pricing during the application process mattered most. A further 34.6% pointed to consistent product availability as a key requirement.
The survey also found more than a third of landlords (39.8%) experienced no issues with their most recent mortgage application. However, a significant proportion (27.8%) reported needing to move quickly to secure products, experienced delays caused by changing market conditions (19.5%) or had to switch products during the application process (18.8%).
Landbay said these findings again reinforced the value of advice in helping borrowers navigate a more operationally complex lending environment.
“The purpose of this section of our survey was to understand how landlords have been coping with the volatility and uncertainty we saw during March and April, and whether this had materially shifted confidence, activity or borrowing behaviour,’’ said Rob Stanton, sales and distribution director at Landbay.
“What comes through very clearly is landlords remain active and engaged with the market, but they are placing much greater value on certainty, consistency and communication from lenders and advisers.”
