Given the recent upheaval in the Buy-to-Let market, many would assume that the number of products to first-timers would dwindle along with demand. However, the latest research from Moneyfacts.co.uk shows the number of deals to first-time landlords has risen to record levels, increasing by a massive 13% since the start of this year.
Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, said: “It is great news that first-time landlords have more choice than ever before, increasing by a whopping 339 BTL products in just two years. Not only do first-time landlords have more choice, but they have also seen rates fall by 0.36% over the same period.
“While multiple regulations and tax changes may have put some borrowers off becoming a landlord, it seems many are undeterred. In fact, it has been reported that Accord has seen the number of applications from aspiring landlords double over the past 12 months.
“This is little surprise when many consider bricks and mortar as a safe bet. With savings rates low, many are looking to get better returns elsewhere. Also, while rents are high and mortgage rates for first-time landlords are still falling, the potential for a decent return is high.
“Potential investors should not get ahead of themselves however. Since September 2017, they face checks and questions about their finances and will need to do their homework to ensure they get the best deal.
“Of course, BTL is not without its risks, and anyone seeking to enter this sector would be wise to seek the advice of a financial adviser to see if this is the best route for them.”
Source: Property118