Last week we held our annual Buy-to-Let (BTL) Mortgage Conference, sponsored by Paragon Mortgages. The event attracted over 90 attendees for a day of discussion, learning and networking at the London offices of TLT, an associate member of UK Finance.

The conference was fittingly split into three segments. The first few speakers addressed the wider issues affecting the market, including broader housing issues and the regulatory environment. Next, delegates heard from lenders and brokers who discussed how specific issues affected their businesses. Finally, the day wrapped up by sharing the perspectives of the end-users of BTL mortgages - the landlords and tenants.

The first speaker was a representative from the Prudential Regulatory Authority (PRA), who discussed the initial market observations that motivated the new minimum underwriting standards of BTL lending - standards which only took effect early last year. Because of the Bank of England's new loan-level BTL data collection, the regulator can now take an evidence-based view of the market as it evolves.

This presentation featured key metrics relating to the quality of lending in the BTL market, including interest cover ratios (ICRs), loan-to-value ratios (LTVs), top-slicing (which refers to using personal income to supplement rental income to meet the ICR), and the proportion of BTL loans on five-year fixed rates.

After hearing further market commentary from Andrew Baddeley-Chappell, chair of the Bank of England's Residential Property Forum, and an academic perspective on property investment from Professor Yolande Barnes, the conference turned towards the views of mortgage lenders and intermediaries.

Regulatory intervention over the past few years has brought on a raft of changes in the types of products required by the BTL market. This has created new challenges for both lenders and brokers. Conference attendees heard from two stimulating panels - one comprised of brokers; the other, lenders. The issues discussed included the increasing prevalence of lending to special purpose vehicles (SPVs), plus the need for borrowers to take holistic tax advice to properly understand their financial position in light of the current tax rules. As with any good panel discussion, the audience brought their fair share of comments.

The day ended with several sessions focusing on the issues that affect landlords and tenants. Our final panel of the day led to a stimulating debate around whether landlords have as much influence on the rental market as is popularly perceived. There was, however, some agreement that the government could be doing more to improve outcomes in the housing market.

UK Finance is grateful to Paragon Mortgages, TLT, our speakers for the day, and all the delegates who helped make the event a success.