The Intermediary – March 2025 - Flipbook - Page 85
L O C A L FO C U S
Stoke-on-Trent
Currently, private rentals make up
17.8% of the housing stock, falling
significantly below the national
average of 23.6% for England
and Wales.
While demand for rental properties
remains steady, the market is seeing a
shi in investor behaviour.
Lownds notes that while buy-to-let
has not seen a major boom in the area,
there also “hasn’t been a significant
number of redemptions ahead of
upcoming regulatory changes for
landlords.”
Meanwhile, broader economic
challenges and tighter lending
conditions are affecting the higherend rental market.
Cooke highlights that “the higher
end of the market, particularly
properties over £350,000, is seeing
more challenges.”
With first-time buyers stepping
back due to affordability concerns,
“it’s usually investors who keep things
ticking over.”
Nevertheless, recent Government
policies have placed pressure on
landlords, leading many smaller
investors to exit the market.
Cooke explains: “Government
intervention has pushed many
accidental landlords and even smaller
portfolio landlords to exit, leading to a
surge in properties being sold.
“The big question is how the market
will keep balancing itself out without
these landlords.”
At the same time, those more hardy
landlords who have chosen to remain
in the market are adapting their
strategies to remain viable.
Adams observes that “the buy-to-let
market has slowed in our experience,
as customers are seeing their profits
squeezed due to much higher rates,
which makes the yield much smaller.”
To counteract this, a number of
investors are diversifying into semicommercial properties and houses
in multiple occupation (HMOs),
which can offer stronger returns
A cautious approach
Stoke-on-Trent
Residents
655k
Average age
42.1
Residents per household
2.34
Stoke-on-Trent postcode area.
Source: www.plumplot.co.uk
in the current economic climate.
This shi suggests that while the
traditional buy-to-let market in Stokeon-Trent is cooling, investors are
still finding innovative and creative
ways to navigate and capitalise on
opportunities within the rental sector.
Steady demand
JAMES ADAMS
director at My Simple Mortgage
W
ith the fluctuation in interest rates over the last few years,
customers are certainly more wary before committing to
new mortgages. Customers are more inclided to take a
‘wait and see’ approach, which has slowed applications to
a degree, but good advisers are encouraging customers to secure a rate
now through an application, that can always be lowered before
completion if a better rate is available. is protects customers against
rate rises in the short term, as once an application is submitted, their
rate is protected from rate increases in the market.
Over recent years we’ve seen a significant shi from 2-year fixed rates
to 5-year fixed rates as customer’s want security over their budgets for
longer. is shows no real sign of going away, and longer term fixed rates
are certainly more attractive to wary customers. 10-year fixed rates are
becoming more popular too.
While we don’t have a single lender that would be prominent, we are
certainly engaging more with alternative and specialist lenders to cope
with the increasing variety of credit and income situations clients have.
2025 is predicted to be a bumper year for remortgages as customers
come off either ultra-low 5-year fixed rates that they secured in
lockdown, or off the much higher rates from two years ago.
e buy-to-let market has slowed in our experience. Customers are
seeing their profits squeezed due to much higher rates which makes the
yield much smaller.
ere is an increase in people looking at semi-commercial and house
in multiple occupation (HMO) properties as they look to diversify their
portfolio from standard let single-unit houses.
It is clear that Stoke-on-Trent’s
property market remains resilient
and adaptable, driven by affordable
housing, steady demand, and ongoing
regeneration projects.
While challenges such as fluctuating
interest rates and shiing investor
dynamics pose questions about
the future, buyers, homeowners,
and landlords continue to find
opportunities amid uncertainty.
The first-time buyer market
remains particularly active, as
remortgaging demand is expected
to rise, and investors continue to
explore alternative property types to
maintain returns.
With lenders still keen to offer
competitive deals and borrowing
conditions remaining favourable,
with the outlook for 2025 tentatively
positive, this location is wellpositioned to weather economic shis.
As Cooke aptly puts it: “Lenders
are maintaining a strong appetite
for lending, making mortgages
more accessible, which keeps
things moving.
“The key question is how long these
conditions will last. For now, demand
remains high, and the market is in a
good place.” ●
March 2025 | The Intermediary
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