WHAT DO CUSTOMERS REALLY WANT FROM THEIR BROKER IN THIS CHANGING LANDSCAPE?

By Caroline Mirakian, Head of National Accounts at Pepper Money

There is always uncertainty in life but providing professional financial advice at the time of a global pandemic can be a particular challenge. So, what do your clients really want, and expect from you in this changing landscape?

Here are four of our tips:

1.    Get back to basics

In a challenging environment, a good first step is to take a step back and focus on delivering the basics really well. This is a common approach taken in sport when a new coach takes over an ailing team, and it applies just as well to any profession going through an uncertain period – get the basics right and the rest will follow.

HEIGHTENED DEMAND FROM FIRST-TIME BUYERS

We all know how the temporary rise in the stamp duty threshold has accelerated activity throughout the housing market. Whilst many headlines have focused on the rise of first-time buyers for homeownership purposes, recent data from Legal & General Mortgage Club suggested that there is also heightened demand from first-time buyers looking to enter the buy-to-let sector. Searches made by advisers through its sourcing tool showed that the criteria search combination for first-time buyer, first-time landlord and non-owner occupier has seen an 18% increase since the beginning of September.

COULD Q4 PROVIDE THE MUCH NEEDED OPPORTUNITIES THAT LANDLORDS NEED RIGHT NOW?

As we close in on Q4, I’m sure many people would simply like to draw a line under 2020 and move on. However, there is another full quarter to deal with. Thankfully, we are now in a position where we can look forward with greater levels of optimism than previously seen at the beginning of the previous two quarters.

When it comes to buy-to-let, Q4 will be a quarter of opportunities for landlords as we continue to build on the large amount of resilience shown throughout the sector over the past six months. Despite some lingering – and justifiable – caution, we have seen a broadly upward trend in the number of available BTL products since May. Average rates remain highly competitive and lenders’ appetite for business has steadily grown over the Summer months.

GROWING BUY-TO-LET ACTIVITY PLACES EMPHASIS BACK ON THE ADVICE PROCESS

We can learn many different lessons during challenging times and what I have realised – both from the credit crunch and the recent pandemic – is that the advice process is more valuable than ever during a time when financial circumstances and outlooks can change so quickly. This is a hardly an earth-shattering discovery but focusing on the simple things can often prove to be the most effective.

KEEP TRACK OF CHANGING TENANT PRIORITIES

Many factors continue to impact the current residential and BTL markets. Stamp Duty changes have accelerated activity within the purchase market and the lockdown period has challenged the way that people are living and working which is leading to a number of questions being asked of FTBs, homeowners, landlords and tenants.

Will the attitudes of the younger generation change towards the huge commitments necessary for getting onto the housing ladder? And will the homeownership dream even be achievable for the younger generation in the current economic climate? Could this combination of factors lead to even more people becoming reliant on the rental market?

HOW WILL CONSUMER BEHAVIOUR CHANGE FOLLOWING COVID-19?

By Caroline Mirakian, Head of National Accounts at Pepper Money

Life is beginning to grind back into gear, but it’s a different gear to the one in which we entered the start of the COVID-19 pandemic. Wearing face coverings on public transport and in shops, for example, will be part of life for quite some time and working from home will be a new reality for many.

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