Portfolio landlords are rising above tough regulatory changes


Despite the latest raft of extra rules around buy-to-let lending for portfolio landlords, it seems that demand is still strong for these specialist mortgages.

The latest data from UK mortgage company Accord has revealed that 32% of all its buy-to-let mortgage applications came from landlords who own four or more properties – the required criteria to be considered a portfolio landlord – since September last year.

It was in September that the Prudential Regulation Authority (PRA) brought in rules for stricter underwriting processes by lenders for portfolio landlords, tightening affordability levels and reducing the availability of mortgages for some prospective borrowers. The new regulations mean that a portfolio landlord’s entire lending portfolio is now assessed during the application process.

The results seen by Accord prove that, rather than being deterred, the sector is maintaining resilience and adapting to the changing market.

Chris Maggs, commercial manager at Accord, 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.”

Standing their ground

He added: “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.”

Consumer landlords – also known as accidental landlords, or those who rent out a property where they or relatives have lived – accounted for 18% of Accord’s business since April last year, an indication that many homeowners are choosing to hold onto their homes and rent them out, rather than sell.

Jaedon Green of the Leeds Building Society believes that a stricter lending process will mean that questions are asked sooner rather than later in the application process, meaning less follow-up queries and a smoother process.

He added: “Contrary to the doom-mongers’ predictions, underwriting approvals have risen, suggesting lenders’ pragmatic response to the regulatory changes has led to better-quality submissions, helping us to meet the needs of our portfolio landlords and support the next phase of evolution in the buy-to-let market.”

CityGreens, Solihull, Birmingham

City-style apartments directly on Birmingham's largest park

  • Limited pre-launch prices.
  • ZERO ground rent
  • Excellent tenant demand

£182,000 - £419,000

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Portfolio landlords are rising above tough regulatory changes

Portfolio landlords are rising above tough regulatory changes


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.