Buy-to-let market offers strong prospects despite shifting landscape

Buy-to-let investors continue to face regulatory change and rising compliance expectations but many in the industry say the opportunities for landlords are stronger than they’ve been in years.

Roger Morris, Group Distribution Director at Chetwood Bank, said the conditions are increasingly favourable for those willing to take a long-term view.

Speaking on the Cornerstone Finance Group podcast, he said: “I’ve never seen so many opportunities in the buy-to-let market as there are right now. My own rents have risen by 42% over the last three years and demand is incredibly strong – the last property I listed in Birmingham had 39 families apply to rent it.”

Chetwood Bank, which launched in Wrexham and is the newest bank to be established in Wales, owns two specialist lenders – CHL Mortgages for Intermediaries and Moda Mortgages – designed to serve different parts of the market. While CHL focuses on more complex portfolio cases, Moda Mortgages is geared towards first-time landlords and those in the early stages of growing their investments.

Roger said lenders must ensure they have the right tools in place to support intermediaries and clients alike.

“Buy-to-let is going through a transition, with more regulation and a growing professional landlord segment,” he said. “What we’re doing at Chetwood is developing a comprehensive solution that gives mortgage advisors the products and support they need – including free valuations – to engage with clients confidently, whether they’re remortgaging, purchasing, or considering product transfers.”

Sarah Hopkins, Mortgage and Bridging Broker at Cornerstone Finance, agreed that demand remains high, particularly in markets like Wales and the Midlands. But she added that broker knowledge is key.

She said: “Limited company structures are more common now, but they vary a lot. It’s not a one-size-fits-all. Brokers need to understand the criteria and processes for both straightforward and more complex cases. The underwriting process may be similar, but there are still important steps and additional requirements.”

Mike Powell, Mortgage Broker at Mike Powell Mortgages, said professional landlords were continuing to expand their portfolios and were largely alert to the opportunities.

He said: “We’re seeing long-term landlords taking advantage of those who are exiting. There are still definite growth areas and, as advisors, we need to be proactive – not just when the fixed term ends, but throughout.”

Roger added that mortgage advisors who invest in their own development and stay up to date on products and regulation are best placed to support clients.

“Buy-to-let is one of the most complex parts of the market now,” he said. “Advisors who understand the full picture – from EPCs and tax implications to yield and long-term planning – are delivering real value. That’s what the market needs.”