The buy-to-let market is unlikely to see any significant future innovation because it is mature and has already undergone its metamorphosis.
Brokers and lenders agree that the market remains buoyant and is not desperate for any new types of products or major changes.
It is also doubtful if many new lenders will enter the sector as it requires niche players and is already well populated.
Alexander Hall chief operating officer Andy Pratt says: “There are still a few tweaks required rather than any major changes. Rates are good at the moment and it is a mature market so there have not been any massive steps forward recently.”
Paragon Mortgages managing director John Heron says:
“Innovation over the last 10 years has been staggering. You now have a wide range of tenancies and the arrears’ performance significantly outperforms the market so you have very few losses.”
On new lenders entering the sector, National Association of Commercial Finance Brokers chief executive Keith Heron says: “There is already a huge amount of competition so I am not sure there are too many coming into the market. Lenders in the market are already established and some of the big institutions may start looking but I cannot see a whole host entering.”
Pratt adds: “I think it is a year or two off before the big investment banks coming into the mortgage market then enter buy to let.”