In Partnership with
Experts discuss buy-to-let market outlook
Experts from Paragon, Landbay, and Family Building Society discuss the evolving UK buy-to-let market, address challenges from rising interest rates to portfolio diversification, and share insights into the future for landlords and brokers
Sally Wright
Paragon Bank
Industry experts
Beth Foryszewski
Landbay
Stuart Heavens
Family Building Society
With over 35 years in financial services, Sally brings a wealth of experience to her role as Head of Distribution at Paragon. Her impressive career includes key positions such as head of intermediary distribution at Hampshire Trust Bank and head of sales at Vida Homeloans. Sally’s extensive background spans the intermediary sector, with notable roles at OSB, Rooftop Mortgages, Mortgage Trust, and Nationwide.
At Paragon, Sally focuses on building relationships with major network and club partners. Her primary objective is to raise awareness of the bank’s buy-to-let proposition, whilst broadening its distribution network. Sally works diligently to align strategies and maximise opportunities in this sector.
head of Distribution,
Paragon Bank
Sally Wright
Beth Foryszewski brings over a decade of expertise in the buy-to-let market, blending extensive experience as a broker, lender, and distributor. Since joining Landbay in 2018, she has excelled in managing national accounts and strengthening intermediary relationships. Her strategic insight into market trends and relationship-building led to her being named BDM of the Year at the SFI Awards in 2020. Beth’s comprehensive 360-degree view of the BTL landscape drives Landbay’s growth and enhances its market presence, making her a valuable contributor to discussions shaping the future of the BTL market.
national account manager, Landbay
Beth Foryszewski
Stuart Heavens joined Family Society in 2022, and looks after intermediaries on the South Coast, covering Dorchester to Eastbourne. He brings with him a wealth of knowledge, having worked for Nationwide and Leeds Building Societies as well as Catalyst Property Finance, and has hands-on experience advising borrowers at a corporate mortgage broker.
Stuart loves the old-fashioned approach of speaking face-to-face where possible to forge strong relationships. Integrity, building trust, and his desire to problem solve are integral to his approach, and he enjoys being able to spend his time talking to other industry professionals about mortgages and their potential cases.
business development manager, Family Building Society
Stuart Heavens
“Brokers and lenders are both very important. Borrowers may not think about what might happen in the event of illness, redundancy, or death, so it’s very important that they get the right advice”
Sally Wright,
Paragon
THE UK's buy-to-let market has faced considerable challenges over the past few years, but despite the difficulties, industry experts are cautiously optimistic about its future. In a discussion with Mortgage Introducer, three key figures in the sector – Sally Wright from Paragon, Beth Foryszewski from Landbay, and Stuart Heavens from Family Building Society – identified several trends that brokers and lenders should expect to navigate over the coming years.
“Landlords are a resilient bunch, and the market always has to find a way to evolve and move forwards. I think the market itself will continue to thrive”
Stuart Heavens, Family Building Society
“We’re a fintech lender, so we’re always looking at how best to use technology. At a time when affordability is very stretched, anything that saves time and money is amazing”
Beth Foryszewski,
Landbay
Wright added that the proportion of buy-to-let properties in arrears remains low, at just 0.7 per cent. However, responsible lending practices are crucial in helping landlords navigate financial difficulties.
“Brokers and lenders are both very important,” she said. “Borrowers may not think about what might happen in the event of illness, redundancy, or death, so it’s very important that they get the right advice. The broker will carry out the fact-find, and will make sure that they can cover payments or have protection in case of those life events. From a lender’s perspective, responsible underwriting is key.”
Heavens agreed that advancements in technology, particularly in sourcing and criteria systems, are essential to helping brokers manage increasingly complex cases. With more landlords diversifying their portfolios or incorporating their holdings into limited companies, these tools are becoming critical in ensuring brokers can provide the best possible service to their clients.
Foryszewski highlighted how Landbay launched a “high-fee, low-rate product” that allowed landlords to reduce their stress rates by paying higher fees upfront, thus spreading the financial burden over a longer term. This type of innovation has been crucial in helping landlords navigate a high-cost environment, especially in regions like London, where the affordability squeeze has been most significant.
Meanwhile, Stuart Heavens highlighted the effect of rising rates on landlords’ ability to pass stress tests, with lenders increasingly offering tailored solutions.
“With the rise in interest rates, one of the knock-on effects is around landlords’ ability to pass stress tests and get the loan amounts they need,” he said.
Family Building Society has responded by creating more flexible products, such as its offset buy-to-let mortgage, which allows landlords to offset their mortgage balance and improve cash flow, as well as a more lenient stress-testing approach focused solely
“We’re in a bit of a golden age of technological advancement, and that’s really exciting,” she said. “We’re a fintech lender, so we’re always looking at how best to use technology. At a time when affordability is very stretched, anything that saves time and money is amazing.”
Wright also recognised the value of technology in improving the broker and customer experience. Tools that integrate information from HMRC or Companies House, for instance, can save time and reduce errors.
“Speaking to brokers, they want three things – certainty, transparency, and speed,” she explained. “Any system that can bring a level of automation and integrated information from
Buy-to-let: highlights (2023)
Source: Finder
£18m of BTL lending in 2023 to £30.2 million and sourced to UK Finance
on the subject property.
As landlords grapple with affordability and rising costs, many have turned to diversifying their portfolios in search of higher rental yields. Wright noted that while the market has contracted, it has also diversified, with landlords “chasing higher rental yields” through investments in HMOs (houses in multiple occupation), multi-unit freehold blocks, and other niche property types. This shift indicates that landlords are adapting to new market conditions by exploring different property types that can offer better returns.
Heavens also confirmed this trend, stating that “landlords are naturally looking at ways to diversify their portfolios,” and many are opting for semi-commercial units or multi-unit blocks. These shifts have been driven by the need to improve cash flow, which has become increasingly difficult to manage given the regulatory and tax changes of recent years.
Read on
trusted third parties is great, which is what we will do with our incoming mortgage origination platform.”
“Good landlords are always looking to expand their portfolios, and it’s a great investment in the long run,” she said.
“The smaller landlords may be selling because the property is not their only source of income, and it’s become a bit of a headache for them. With portfolio landlords, that’s their core business.”
Heavens concluded with a reminder of landlords’ resilience. “Landlords are a resilient bunch, and the market always has to find a way to evolve and move forward. I think the market itself will continue to thrive. It’s down to brokers and lenders to work together to ensure that it’s profitable for everyone.”
Paragon Bank have been working in partnership with intermediaries for over 25 years, helping to guide landlords through the buy-to-let landscape.
They understand that property investment can be complex, and provide the knowledge and expertise to help advisers and their landlord clients succeed. Whether the client is a first-time landlord or seasoned professional with a portfolio of properties, their tailored products and dedicated support are designed to meet the unique needs of all landlords.
Find out more
We’re an award-winning mortgage platform, created for our customers, designing better ways to buy-to-let. We focus on the customer. We bring together the best people and partners, leveraging our data, technology, and market expertise.
Choose Landbay and you’ll find experts at the end of the line, smart technology designed for you, and fast decisions you can count on. Our team, our community, and the wider world matter to us. We’re carbon-neutral, and our industry awards and customer reviews speak for themselves. At Landbay, we’re committed to becoming your go-to mortgage funding partner.
Find out more
Family Building Society is the UK’s 11th-largest building society, with over 63,000 members and £2.5bn in assets. A mutual organisation owned by its saving and borrowing members, over 80 per cent of its borrowings are raised by deposits from individuals. Family Building Society’s mortgage products are underwritten by a team that looks at each case on an individual basis based on common-sense and tailored credit checks rather than credit scoring.
Find out more
In Partnership with
Experts discuss buy-to-let market outlook
Experts from Paragon, Landbay, and Family Building Society discuss the evolving UK buy-to-let market, address challenges from rising interest rates to portfolio diversification, and share insights into the future for landlords and brokers
Read on
Stuart Heavens
Family Building Society
Beth Foryszewski
Landbay
Sally Wright
Paragon Bank
Industry experts
With over 35 years in financial services, Sally brings a wealth of experience to her role as Head of Distribution at Paragon. Her impressive career includes key positions such as head of intermediary distribution at Hampshire Trust Bank and head of sales at Vida Homeloans. Sally’s extensive background spans the intermediary sector, with notable roles at OSB, Rooftop Mortgages, Mortgage Trust, and Nationwide.
At Paragon, Sally focuses on building relationships with major network and club partners. Her primary objective is to raise awareness of the bank’s buy-to-let proposition, whilst broadening its distribution network. Sally works diligently to align strategies and maximise opportunities in this sector.
head of Distribution,
Paragon Bank
Sally Wright
Beth Foryszewski brings over a decade of expertise in the buy-to-let market, blending extensive experience as a broker, lender, and distributor. Since joining Landbay in 2018, she has excelled in managing national accounts and strengthening intermediary relationships. Her strategic insight into market trends and relationship-building led to her being named BDM of the Year at the SFI Awards in 2020. Beth’s comprehensive 360-degree view of the BTL landscape drives Landbay’s growth and enhances its market presence, making her a valuable contributor to discussions shaping the future of the BTL market.
national account manager, Landbay
Beth Foryszewski
Stuart Heavens joined Family Society in 2022, and looks after intermediaries on the South Coast, covering Dorchester to Eastbourne. He brings with him a wealth of knowledge, having worked for Nationwide and Leeds Building Societies as well as Catalyst Property Finance, and has hands-on experience advising borrowers at a corporate mortgage broker.
Stuart loves the old-fashioned approach of speaking face-to-face where possible to forge strong relationships. Integrity, building trust, and his desire to problem solve are integral to his approach, and he enjoys being able to spend his time talking to other industry professionals about mortgages and their potential cases.
business development manager, Family Building Society
Stuart Heavens
In Partnership with
Experts discuss buy-to-let market outlook
Experts from Paragon, Landbay, and Family Building Society discuss the evolving UK buy-to-let market, address challenges from rising interest rates to portfolio diversification, and share insights into the future for landlords and brokers
Read on
Beth Foryszewski
Landbay
Sally Wright
Paragon Bank
Industry experts
Stuart Heavens joined Family Society in 2022, and looks after intermediaries on the South Coast, covering Dorchester to Eastbourne. He brings with him a wealth of knowledge, having worked for Nationwide and Leeds Building Societies as well as Catalyst Property Finance, and has hands-on experience advising borrowers at a corporate mortgage broker.
Stuart loves the old-fashioned approach of speaking face-to-face where possible to forge strong relationships. Integrity, building trust, and his desire to problem solve are integral to his approach, and he enjoys being able to spend his time talking to other industry professionals about mortgages and their potential cases.
business development manager, Family Building Society
Stuart Heavens
Beth Foryszewski brings over a decade of expertise in the buy-to-let market, blending extensive experience as a broker, lender, and distributor. Since joining Landbay in 2018, she has excelled in managing national accounts and strengthening intermediary relationships. Her strategic insight into market trends and relationship-building led to her being named BDM of the Year at the SFI Awards in 2020. Beth’s comprehensive 360-degree view of the BTL landscape drives Landbay’s growth and enhances its market presence, making her a valuable contributor to discussions shaping the future of the BTL market.
national account manager, Landbay
Beth Foryszewski
With over 35 years in financial services, Sally brings a wealth of experience to her role as Head of Distribution at Paragon. Her impressive career includes key positions such as head of intermediary distribution at Hampshire Trust Bank and head of sales at Vida Homeloans. Sally’s extensive background spans the intermediary sector, with notable roles at OSB, Rooftop Mortgages, Mortgage Trust, and Nationwide.
At Paragon, Sally focuses on building relationships with major network and club partners. Her primary objective is to raise awareness of the bank’s buy-to-let proposition, whilst broadening its distribution network. Sally works diligently to align strategies and maximise opportunities in this sector.
head of Distribution,
Paragon Bank
Sally Wright
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Shifts in diversification and portfolio management
Published Octobber 14, 2024
4.6 million
Total value of buy-to-let lending
£18.26 billion
Average buy-to-let rental yield (Q4 2023)
6.74%
Source: Uswitch
Buy-to-let mortgages occupied 7.5% of total gross mortgage advances
Buy-to-let: mortgage lending statistics (2023)
£4.7 billion worth of lending
51% of landlords intend to take out a buy-to-let mortgage
The buy-to-let market has been particularly strained in recent years due to rising interest rates and affordability issues. The infamous 2022 mini budget worsened the situation, with increased borrowing costs making it difficult for landlords to maintain cash flow.
“2023 was a really difficult year for everybody in buy-to-let,” Wright explained. “Lending was significantly down, and a lot of that was the result of rising interest rates and lack of confidence in the market.”
Beth Foryszewski echoed these concerns, pointing out that affordability has been a consistent challenge for both landlords and lenders. To address these concerns, lenders have had to innovate.
A market hit by rising rates and affordability pressures
client – but so long as it is an option, it can make their money go that little bit farther.”
Foryszewski further emphasized the importance of education around limited-company structures for landlords. Many landlords have begun to move their properties into limited companies to benefit from more favourable tax conditions.
“Most lenders who lend to limited companies will have a lower ICR calculation,” she explained.
“That means they tend to lend at 125 per cent coverage, rather than 145 per cent. That extra 20 per cent does make a lot of difference, and we’ve run a series of events for brokers where they can hear solicitors and accountants talking about these types of structures.
“Of course, it’s not the perfect situation for every landlord
As in many sectors, technological advancements are beginning to make waves in the buy-to-let space. Both lenders and brokers are benefiting from digital tools that speed up processes, increase accuracy, and enhance transparency.
Foryszewski pointed to the work being done by the Open Property Data Association (OPDA), which is focused on digitizing the conveyancing process to reduce transaction times from several months to as little as three weeks.
The role of new technology
Rental voids are a key concern for landlords, as periods without tenants can severely affect cash flow. While there are options such as rental insurance to protect against such risks, landlords must be proactive in managing void periods.
According to Heavens, having savings or investments as a contingency can help cover void periods, and responsible underwriting from lenders can ensure that landlords are prepared for potential vacancies.
Mitigating rental void risks
fact, 43 per cent stated that they were planning to buy within the next 12 months – data that shows confidence in the short-term prospects of the buy-to-let market.
A resilient market signals a promising future
Despite the many challenges faced by the buy-to-let market, all three experts expressed optimism about the future. Wright predicted that smaller landlords with one property would likely sell up, creating opportunities for portfolio landlords to expand. Portfolio landlords have also expressed a preference for property that requires improvements to drive capital and rental gains, which presents opportunities for brokers, but also helps improve the standards of homes within the private rented sector, including energy performance.
Foryszewski shared similarly positive sentiments, pointing to recent data that suggests that 70 per cent of UK landlords are not planning to sell. In
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