Fleet CCO defends BTL sector as calls grow to attract new landlords

The BTL market “cannot be destroyed” but requires greater support, according to Fleet Mortgages CCO Steve Cox (pictured above).

Speaking on a panel at the Brightstar Lending Expo on 7th October, Steve described the space as a “fundamental part” of the UK’s housing fabric.

“You cannot destroy the private rental sector,” he said.

“You cannot do it — it’s a fundamental part of our housing fabric.”

However, he argued that more needed to be done to attract a new generation to the sector.

Steve said inheritance could also create a new generation of landlords as properties and limited company structures pass down through families.

He added that lenders were unlikely to significantly increase their risk appetite through much higher LTVs in the current environment

When asked to identify potential sources of new landlords, OSB Group head of intermediary sales and distribution Emily Hollands suggested attitudes towards property ownership among younger generations could change the shape of the sector.

Emily said younger people may increasingly decide that rather than prioritising the purchase of their own residential property, they want to invest in property as a way of generating returns.

She added: “The BTL market will continue [and] it will change over the next three to five years.”

However, the panel acknowledged the challenge of raising deposits for younger would-be

landlords, particularly given high levels of student debt and the need for many to first fund

their own housing.

As such, Brightstar Group chief executive Rob Jupp suggested the “Bank of Mum and Dad” could play a role in helping younger people enter the market.