January 2020
By John Goodall, CEO at Landbay
Landbay creates access to a new type of investment opportunity for the everyday lender, helping investors to reap the consistent, solid and regular financial returns offered by the resilient UK buy-to-let mortgage market and supporting responsible borrowers in securing access to faster funding.
Founded in 2014, Landbay has become one of the UK’s foremost BTL specialist lenders. After having enjoyed a very successful year in 2019, CEO John Goodall explains how the business will grow further in 2020.
John, what makes you believe that 2020 is a good year for business?
Political uncertainty has significantly reduced. We don’t know the exact shape of any trade deal that can be negotiated by the end of 2020, or even if anything can be done within 12 months, and so uncertainty has not been removed altogether. However, for the first time since 2010, we have a government with a working majority and the threat of high tax, anti-business socialism has gone for the foreseeable future. This will give the UK economy a welcome boost over the first 6 months of the year - I think that we will see increased investment in the UK economy from overseas and we are already seeing the pound strengthen.
What does this mean for the BTL sector?
Well - the threat of increased property taxes and rent controls have dissipated over the last couple of years. We have seen potential buyers of property sitting on the side-lines, waiting to see what happens. I expect that we will now see professional landlords start to further invest in additional property. If the UK government takes a pragmatic approach on immigration and the employment market remains strong, then the demand side will remain strong, which will further reassure property investors.
So, it’s a good time to invest in property?
The outlook for the UK economy and the property sector is now better than it has been at any time since the referendum. In many respects, not a huge amount has changed, however, confidence will return to the market and that is a crucial ingredient for the economy to prosper.
How much do you anticipate the property market in the UK to grow to in 2020?
I expect 2020 to be the year that we see a proper recovery in the purchase market; I forecast that we will see it grow to around £12bn. It could turn out to be a busy year for brokers and lenders focussed on the professional BTL market.
If you want to find out how Landbay can help your prospective clients build their BTL portfolio, get in touch on 0203 817 7700. You can also keep up-to-date with Landbay’s latest research, developments and all things buy-to-let by visiting their blog! https://blog.landbay.co.uk/