If the start of a new decade isn’t a time to be forward-thinking and bullish, I don’t know when is.

Generally I’m an upbeat, passionate and optimistic person; some may say I’m a reflection of our business and the buy-to-let market as it stands. As a sector, and as a business, we have had to adapt and evolve in line with market/economic conditions and government intervention far beyond our control. Yet we survived – and, in our own way, thrived.

Change needs to be embraced in order for obstacles to be overcome. The BTL sector has been talked down for too long by too many people with an eye on the past rather than a vision for the future. This year offers a new start, and an opportunity to banish unwanted and unjust negativity around a market that continues to generate strong levels of business for lenders, intermediaries, landlords, developers and investors across the UK.

Thankfully, I’m not alone in my positive outlook. A new survey has revealed that many people still believe the BTL market represents a worthwhile investment. Around 75 per cent of the 1,000 people surveyed by Perrys Chartered Accountants backed BTL, rising to 83 per cent of millennials. The survey found that a better choice of mortgage products was the main factor to encourage people to purchase a BTL property, followed by reduced stamp duty. More than a fifth of respondents also expressed an interest in alternatives to traditional property investment, such as short-term lets.

In addition, Savills head of residential research Lucian Cook offered an upbeat prediction on the lettings market. In his firm’s forecast for the housing market over the next five years, he suggested that rents would increase by an average of 15.4 per cent UK-wide by the end of 2024.

So where are the opportunities for landlords and intermediaries? As cited in the earlier data, short-term letting was a growth area in 2019 and I expect it to continue upward. This was further outlined in research from Cambridge & Counties Bank, which found that the majority (85 per cent) of mortgage brokers expected an increase in demand for holiday-let loans. Of this number, 29 per cent expected a significant rise.

The key reason given was Brexit and the fall in the value of the pound favouring the UK as an overseas holiday destination, as cited by 45 per cent of brokers. Other reasons included favourable taxation for holiday properties (41 per cent) and an expected rise in UK domestic holiday making.

Expat lending

BTL lending to expats is also on the rise. The latter part of 2019 saw more products being launched in this area and the early weeks of 2020 have already seen Hanley Economic Building Society enter the fray.

The sustained uptake in limited company lending and the growing proportion of professional landlords transitioning to this type of borrowing have been widely documented, and there is nothing to suggest this trend will slow soon. The mainstream BTL market also remains attractive as increased competition continues to drive down rates and generate more choice for all landlord types.

These represent some of the areas that I expect to be focal points of the BTL market over the course of the next 12 months. As always, there will be some surprises and challenges along the way, but that is par for the course. I can’t wait to see what 2020 brings.

Ying Tan, founder and chief executive, Dynamo