More than half (58%) of brokers operating in the buy-to-let (BTL) space have more landlord clients who want to expand their portfolios than sell properties, United Trust Bank reveals.

UTB’s latest mortgage research shows that 65% of brokers said that landlords expanding their portfolios were often considering more unusual and higher yielding properties including houses of multiple occupancy (HMOs) and multi unit blocks (MUBs).

It found that while the BTL market was not as buoyant as it was before interest rates were rapidly increased, there were still lots of opportunities with activity in the market.

Of those brokers surveyed, 60% disagreed that BTL business had declined in the previous six months, and only 32% of brokers said that most of their BTL business was product transfers.

However, 61% of brokers felt that landlords with just one property were more likely to exit the market than those with BTL portfolios.

UTB director of mortgage Buster Tolfree says: “Just as we’re finding in the residential market, mortgage brokers are increasingly helping landlords with specialist BTL mortgages either because of the properties they’re buying and refinancing, or their own circumstances.”

“The great news for brokers is that there are a growing number of specialist mortgage lenders, UTB included, which can cater for them.”

“Even more pleasing is that most brokers are still finding opportunities in the BTL mortgage space, and this reflects our own experience over the last year.”

“Landlords are looking to acquire more unusual types of properties and in locations which may not suit homeowners but nonetheless make great rental properties, for example flats over or next to commercial. These purchases often deliver higher yields than a traditional 3-bed semi and help to mitigate the higher cost of borrowing.”

“At UTB our BTL mortgage sales are, to date, c.35% higher than for the whole of 2023, and applications c.53% up in the same period which shows that there’s demand and that brokers like what we’re doing.”