Changing face of landlords

Findings from The Money Centre's research show the stereotypical landlord is evolving. They are now younger and planning for their future. Female landlords are equal in numbers to the men and more and more landlords are entering buy-to-let by accident.

Think of a landlord and perhaps the first thing that pops into your head is a middle-aged wealthy man presiding over a sprawling empire of flats and one-bedroom houses.

The truth, however, couldn’t be further from the traditional preconceptions and is one of the reasons behind the exponential growth of Norwich-based The Money Centre, now one of the UK’s largest providers of buy-to-let mortgages.

Mark Alexander, managing director explains: “Our landlord surveys have revealed, not only are 40 per cent of landlords under 35, but more than half own one or two properties for rent and there are as many female landlords as there are men.

Over the last decade, tens of thousands of investors have entered the property investment market. Many have done so purely by accident. Perhaps they’ve inherited a house or they’re a couple who used to live in two separate homes and now live together while keeping the other as an investment.

Others use buy-to-let as an alternative to traditional forms of investment. Many people have had their confidence in pensions shaken and are investing in property, which they see as offering greater returns and more control.”

No-one understands the needs of these small investors better than The Money Centre. The company prides itself on the level of guidance its consultants offer to investors, whether it’s their first buy-to-let mortgage, or they already have a portfolio.

This focus on customer service appears to be paying off. Between October and December last year, the company processed over £430 million worth of buy-to-let mortgages; an increase of £200 million compared with the first three months of the year. The total for 2006 was an impressive £1.9 billion.

“We are unique in the UK for holding 35 free workshops every year for portfolio landlords and those thinking about buying a property to let. This year we’re holding them as far afield as Swansea and Carlisle and as close to home as Norwich in June. Each one has between 200 and 300 people attending, so it’s far from a niche investment.

“As property values grow and investors develop their portfolios, more and more of them realise that they need a thought-through strategy and access to consultants to help guide them in their choices,” Mark explains.

“However, The Money Centre offers a service that goes far beyond just arranging competitive mortgages. Our consultants look at the long term, sharing ideas to minimise risks and maximise returns. They share these strategies with their clients to help them limit their exposure to income tax, capital gains tax and inheritance tax.”

Growth in the buy-to-let market is good news for Norfolk. In 2006, The Money Centre took on almost 54,000 new applicants. Mark is keen to stress that maintaining the reputation for excellent customer service the company has fought so hard for means the business is expanding at its base at Norwich International Business Park to keep pace. In the past few months it has moved into extra offices and is recruiting more staff. In addition to mortgage consultants, the company is recruiting extra administration and marketing so it can take its message to even more potential investors. While avoiding making promises, Mark predicts that The Money Centre will be recruiting about 80 staff nationally in the next 12 months. The new staff won’t just be working to support existing customers, as Mark predicts the company will expand by a minimum of 40 per cent this year.

The company is also keen to put something back into the property market that has brought it such success. “I can’t say any more at the moment,” says Mark, “but The Money Centre is working with a major charity on a possible repossession avoidance scheme. Last year alone there were over 77,000 mortgage repossessions in the UK and this figure is sadly predicted to rise in 2007. We hope the scheme would prevent one in ten of all mortgage repossessions.”