One of the most encouraging developments over recent weeks has been the renewed focus on improving the homebuying and selling process.

The Government’s plans to digitise more of the transaction, reduce delays and make moving home a less stressful experience deserve broad support because there are very few people in our industry who would argue that the current process couldn’t be improved.

However, as positive as those proposals are, I do wonder whether we are beginning to view housing policy through too narrow a lens because there is naturally a great deal of attention focused on increasing home ownership, while comparatively little discussion centres on the role the private rental sector (PRS) continues to play in keeping the wider housing market functioning effectively.

The reality is these two sides of the same coin are not competing with one another because they are entirely dependent upon each other, and if one becomes weaker then the other inevitably feels the consequences.

DATA TELLS A REASSURING STORY

That is one of the reasons why I continue to find the results from our quarterly Rental Barometers so encouraging because, despite another quarter dominated by economic uncertainty, the latest Q2 iteration continues to demonstrate how the PRS remains remarkably resilient.

Average rental yields across England and Wales increased to 7.8% over the past year, even though there was a modest quarterly easing.

Far from suggesting landlords are retreating, those figures point towards a market that continues to adapt as conditions change.

Perhaps the most interesting finding, however, is that the traditional North and South divide appears to be narrowing slightly.

The North East continues to offer the highest average rental yield at 9.2%, with the North West following at 8.8%, while Yorkshire & Humberside delivers 8.7% and, including those three, six regions continue to produce yields of at least 8%.

At the same time, Greater London saw yields improve from 6.1% to 6.3% over the quarter, the South East held steady at 6.9% and the East Midlands was one of the few regions to record quarterly growth, suggesting investment opportunities continue to exist across a much broader spread of the country than the traditional yield league tables might suggest.

That should encourage advisers to have wider conversations with landlord clients because the strongest opportunities are not always found by simply following whichever region happens to top the table in any given quarter.

PROFESSIONAL LANDLORDS CONTINUE TO INVEST

The Rental Barometer also demonstrates something else that is often overlooked whenever headlines predict the demise of buy-to-let. Professional landlords have continued investing.

Our own lending data shows purchase business increased from 33% of all applications during Q1 to 36% during Q2, while more than 62% of all applications came from landlords who already own four or more investment properties.

The average Fleet borrower now owns 16 investment properties compared with 10 only a year ago, while limited company borrowing continues to account for 78% of all applications.

Those are not the characteristics of a market that has lost confidence. They are the characteristics of experienced investors continuing to identify opportunities, expand portfolios selectively and work alongside advisers to make informed long-term decisions.

LET’S NOT FORGET WHERE HOUSING SUPPLY COMES FROM

This matters because almost every discussion about housing reform ultimately comes back to one simple issue: supply.

Much of the political debate understandably focuses on building more homes and helping more people become homeowners, both of which should remain priorities, but millions of people will continue to rely on the PRS for many years to come, whether they are saving for a deposit, relocating for work, studying, moving between homes or simply choosing to rent because it best suits their circumstances.

That means a healthy PRS is not an alternative to home ownership. It is one of the foundations upon which a healthy housing market depends.

Against that backdrop, I have been slightly surprised to see fresh calls for further regulation of the sector just weeks after the implementation of the Renters’ Rights Act.

There is no suggestion standards should not continue improving, but equally there has to be recognition that landlords, advisers, lenders and letting agents all need time to understand, implement and adapt to significant legislative change before another round of reform is considered.

A BALANCED HOUSING MARKET BENEFITS EVERYONE

One of the great strengths of the buy-to-let sector has always been its ability to adapt because landlords have responded to changing tax rules, higher interest rates, regulatory reform and shifting economic conditions without walking away from the market.

That resilience is evident throughout the results of this latest Rental Barometer and should give advisers confidence that the long-term fundamentals remain positive despite periodic volatility.

The challenge now is ensuring housing policy reflects that same balanced approach because improving the homebuying process and supporting the PRS should never be viewed as competing priorities.

In reality, they are complementary objectives, and success in one becomes much easier when the other is functioning effectively.

After all, a housing strategy that concentrates solely on those buying homes while overlooking those renting them will never be a complete housing strategy, and advisers understand better than anyone that successful markets depend upon choice, balance and confidence across every part of the housing ladder.

Steve Cox is chief commercial officer at Fleet Mortgages