Additionally, commercial properties can be very difficult to value accurately. Therefore, brokers who can help their clients assess their properties and ensure that they are getting a fair market price from their tenants or from a sale will be an invaluable asset for commercial landlords.
Overseas investors
Finally, the overseas investment community is another major stakeholder in the UK property market. For example, in mid-2023, it was revealed that an estimated £84.2bn of property across England and Wales was owned by foreign homeowners. According to Benham and Reeves, most of these buyers come from Hong Kong, Singapore, and the US.
Due to the fact that they rarely have a permanent address or proof of income in the UK, overseas borrowers are often turned away from mainstream banks because they do not fit into their lending criteria.
As such, brokers who can connect their overseas clients with lenders who do not take a tick-box approach to lending and can take their client’s entire financial situation into account are likely to provide the most value.
Furthermore, these buyers will be less in touch with the trends and intricacies of the UK market, so brokers will also need to provide insights and guidance to help them navigate their investments.
For instance, they will need to pay a stamp duty land tax surcharge on any investment they make, so it is important that brokers inform them of the tax and legal implications at play.
Tailored support is key in allowing UK property market to flourish
The UK property market's diverse range of buyers requires brokers who can provide tailored support.
By understanding the unique needs of typical homebuyers, first-time and seasoned BTL investors, holiday let investors, commercial landlords and overseas investors, brokers can provide this support, ensuring they meet the unique needs of each of their clients.
In truth, this often means going above and beyond what is required.
Brokers' main responsibility is, of course, to facilitate loans for buyers, but anything they can do to support both the lender and borrower in overcoming any potential hurdles, the better chance there is deals proceeding smoothly.
Naturally, lenders must match this approach; they have to invest time to tailor their products and services to the needs of a client, offering additional support where possible to iron out any bumps that appear.
Amid economic uncertainty and high interest rates, the ability to offer bespoke guidance and financial solutions has never been more crucial.
Brokers who adapt to these varied requirements will not only enhance their service quality but also foster greater levels of success in today’s evolving property market.
Paresh Raja is the chief executive of Market Financial Solutions
