Seven percent of a mortgage lender’s new business in 2017 came from first time landlords – despite regulatory and tax changes that may have acted as a deterrent.
The stream of new landlords peaked in November when 11 per cent of the lender’s applications came from first timers, says buy-to-let lender Accord Mortgages.
The figures are proof that buy-to-let remains a popular option for people who are looking to safeguard their financial future, despite recent moves from government to suppress the market.
And 57 per cent of Accord’s buy-to-let applications received last year were from landlords affected by new changes, with one third (32 per cent) of that cohort, coming from those with four or more properties.
Another 18 per cent were from landlords classed as consumers – that is, single property landlords where they or their relatives have previously lived.
Chris Maggs, commercial manager at Accord, said: “2017 was a year of remortgaging for landlords who reaped the benefit of some exceptional mortgage rates, and 2018 is likely to be no different.
“Last year Accord, like many other lenders, adapted its mortgage offerings to meet the changing needs of the market.
“Equally, as new regulation was implemented landlords have begun to adapt to ensure their business withstands the changes.
“This doesn’t negate the fact that things are still tough for landlords, and hopefully 2018 will give them some breathing space to take stock of the changes.
“However, landlords have demonstrated resilience when presented with challenges in the past, and I’m sure that will continue into 2018.”
Source: Simple Landlords Insurance