Accord: landlords resilient in face of regulation

57% of Accord Mortgages’ buy-to-let applications received in 2017 were from those affected by new regulation.

The largest influx of applications Accord saw was from portfolio landlords (32%), those with four or more properties, despite the lender only introducing new criteria for these landlords in September.

18% of the applications Accord received since April 2017 were from landlords classed as consumers: single property landlords where they or their relatives have previously lived.

Despite changes to the buy-to-let sector, including the uplift in stamp duty and phased reduction of tax relief, new investors have not been put off by entering the market with Accord seeing 7% of its total applications from first-time landlords.

The lender opened its doors to new property investors in July and saw a peak in applications in November equating to 11% of the total number of mortgage applications it received that month.

Chris Maggs, commercial manager at Accord Buy To Let, said: “We have seen a significant demand for buy-to-let mortgages from both experienced and first time landlords this year.

“2017 was a year of remortgaging for landlords who reaped the benefit of some exceptional mortgage rates, and 2018 is likely to be no different.

“Last year Accord, like many other lenders, adapted its mortgage offerings to meet the changing needs of the market. Equally, as new regulation was implemented landlords have begun to adapt to ensure their business withstands the changes.

“This doesn’t negate the fact that things are still tough for landlords, and hopefully 2018 will give them some breathing space to take stock of the changes. However, landlords have demonstrated resilience when presented with challenges in the past, and I’m sure that will continue into 2018.”

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