Octane Capital has seen a surge in portfolio buy-to-let enquiries since the Prudential Regulation Authority roles came into force.
The lender has seen a 27% uplift in portfolio buy-to-let enquires in October and November compared the previous two months.
The PRA rules came into force on 30 September and mean lenders require additional underwriting for landlords with four or more mortgaged properties.
Jonathan Samuels, chief executive of Octane Capital, said: “The PRA changes have placed a far greater emphasis on manual underwriting for portfolio landlords, which is something high street lenders simply don’t have in their DNA.
“The new stress-testing rules mean less box-ticking and more bespoke analysis of the way a portfolio is constructed, which not only requires a greater skill-set but is time-consuming, potentially squeezing margins.
“This is especially the case for non-standard borrowers, whose circumstances will often add even more complexity.
“As we see it, the PRA changes will trigger a paradigm shift within portfolio buy-to-let lending, moving the balance of power away from the high street to the growing ranks of specialist lenders who are more at ease with the type of underwriting now required.
“Just two months in since the new rules came into effect, and we are already seeing a clear uplift in enquiries from portfolio landlords.”