The events of recent months have put the buy-to-let sector under pressure once again. Following the scrapping of the rise in Universal Credit, introduced during the pandemic, there was concern a large portion of the population would be unable to make rent payments, and debts would mount.

According to the National Residential Landlords Association, throughout the Covid outbreak the proportion of privately renting households in arrears tripled, so this could just exasperate the problem. The association says landlords have already been flexible with tenants during the pandemic and cannot absorb any more losses.

There will always be challenges in the sector. But brokers are there to help

In addition, having had to adapt to Section 24 — in which the right to deduct mortgage interest and other costs from their tax declaration was removed over time — landlords have contended with changes to dividend tax, corporation tax and National Insurance.

However, as Jeni Browne points out in this month’s Buy-to-let Watch, it isn’t expected that a large number of landlords will exit the market, as some media reports have suggested. If clients understand the tax implications for their own circumstances, which will vary, there should be less need to panic. These changes won’t come into play until April 2023 and, even then, as Browne points out, the UK will still have one of the lowest corporation tax rates of any G7 country.

Meanwhile, there are other changes afoot that may impact the rest of the mortgage market. In this month’s cover feature, Guy Anker looks at how rising inflation, the end of Covid-19 benefit payments and more taxes could leave some borrowers at risk of having their applications rejected if their affordability is overly stretched or lender criteria change. However, in both the residential and BTL markets there are some of the lowest mortgage rates on record.

 It isn’t expected that a large number of landlords will exit the market, as some media reports have suggested

There will always be challenges in the sector. But brokers are there to help clients overcome these hurdles and there are always ways to keep the market moving.

On a final note, it was truly amazing to see so many of you at the Mortgage Strategy Awards last month after so much time apart. This industry thrives when we are all together and we appreciate all your support with the event, more than you know.