Misinformation about the buy-to-let (BTL) sector is the biggest threat, Jonathan Stinton, head of intermediary relationships at Coventry Building Society, has said.
Speaking to Mortgage Solutions this week, when asked what the biggest challenge facing BTL landlords was, Stinton said his “initial thought” was to say taxation, but misinformation was probably the bigger issue.
Stinton said: “[The threat is] landlords perhaps making judgement calls unadvised or ill-advised, listening to the scaremongers that are out there.
“Landlords are going to be intelligent people. It’s their money. They want to make sure they do the right thing for not only their finances, but for tenants as well.”
“I would absolutely encourage them all to go and speak to brokers, and make sure they’re making the right choices rather than having a gut reaction to one of the broadsheets that have said buy to let is dead and landlords are leaving in their droves.
“I think misinformation is a big, big problem in the UK,” he added.
Speaking about the proposed Renters Rights Bill and concerns about the impact it would have, Stinton said there was no need to worry too much about the bill until the details were made known.
He said: “I don’t believe for one second that the government wants to end private landlords. The government will absolutely understand that landlords play an essential part.”
Stinton said in lieu of other investment types, property was still an important aspect of pension provision and planning, while the lack of social housing also meant private landlords played a key role in housing.
The limited company trend
Stinton said there was still a place for individual landlords in BTL, and suggested that while there was an increase in borrowing through limited companies, the cost of changing from private ownership to limited company ownership was “prohibitive for some”.
“We might have a situation where we’ve got a really healthy limited company market for purchases while remortgages are done in individual names,” he added.
He advised brokers not to “ignore [this] part of the market” by assuming all landlords would transition to a limited company structure.
Ultimately, Stinton said brokers would remain key in the BTL market, adding: “There are lots of challenges that get presented to brokers every day, they are the solution finders. They are the ones who can help make this work for clients.
“It’s disappointing to see the negative comments coming through because, yes, the market is challenging but it’s also very rewarding.
“Brokers do a sterling job at trying to make sense of all this and help their clients.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
