Landlords want more certainty from lenders in a volatile environment, according to the latest Landbay buy-to-let survey.
The survey focused on how landlords have coped with a recent period of mortgage market instability and uncertainty.
The survey found more than 80% of landlords currently view the buy-to-let market as either unstable or unpredictable, with 55.6% describing conditions as ‘somewhat unpredictable’ and a further 26.3% saying the market is now ‘highly volatile’.
Landbay said the results reflected the disruption seen across the market during March and April, particularly around rates and product availability but added landlords remain engaged with the market and continue to actively seek funding and advice.
The survey found recent market conditions have already influenced landlord behaviour. Over a third (35.3%) said they had reduced activity as a result of global events and rate movements, while a further 21.8% said they had delayed plans altogether.
At the same time, almost half (49.6%) said their confidence in accessing buy-to-let finance had worsened in recent months, although 45.1% said confidence had remained the same, suggesting landlords still believe funding remains accessible despite the current environment.
Landbay said the findings underline how advisers can play a key role in helping landlords understand the options still available to them in a shifting market.
The survey also highlighted continuing concerns around product availability. More than half (57.9%) described current buy-to-let product choice as ‘limited’ while a further 24.8% said it was now ‘very limited’.
However, Landbay said product availability has already started to improve across the market in recent weeks, with lenders beginning to reintroduce products and pricing becoming more stable following the volatility seen earlier in the spring.
Despite ongoing volatility, landlord activity levels remained high. Almost half of respondents said they had either completed a buy-to-let mortgage in the last month (25.6%) or were currently progressing one (24.1%). Landbay said this demonstrated landlords remain active and engaged with the market, even during periods of relative disruption.
More than 82% of respondents said they used a broker from the outset when arranging their latest mortgage, while almost 10% initially attempted to arrange finance themselves before subsequently turning to an adviser in order to complete the process.
The lender said the results show market complexity and rapidly changing conditions are increasing the value landlords place on professional advice.
While competitive pricing remains the most important factor landlords look for from lenders, the survey found growing emphasis is now being placed on certainty, consistency and communication
Over two-thirds (66.2%) said competitive rates remained most important, however 44.4% highlighted certainty once a mortgage offer had been issued, while 36.1% said stability of pricing during the application process mattered most. A further 34.6% pointed to consistent product availability as a key requirement.
The survey also found 39.8% of landlords experienced no issues with their most recent mortgage application. However, a significant proportion reported needing to move quickly to secure products (27.8%), experienced delays caused by changing market conditions (19.5%) or had to switch products during the application process (18.8%).
Landbay said these findings again reinforced the value of advice in helping borrowers navigate a more operationally complex lending environment.
Landbay sales and distribution director Rob Stanton said: “The purpose of this section of our survey was to understand how landlords have been coping with the volatility and uncertainty we saw during March and April, and whether this had materially shifted confidence, activity or borrowing behaviour.
“What comes through very clearly is landlords remain active and engaged with the market, but they are placing much greater value on certainty, consistency and communication from lenders and advisers.
“While rates remain incredibly important, landlords also want confidence that products will remain available, that cases will progress smoothly and they can rely on lenders to support them through periods of market volatility.”
