Brokers see sharp rise in first-time landlords
Mortgage advisers report a growing number of new landlords applying for mortgages for buy-to-let investments.
In a poll by specialist buy-to-let lender Paragon, advisers said 27% of cases involved first-time landlords against 22% in the second quarter, the highest level seen since the financial crisis.
Tenant demand remains high according to 91% of landlords and a total of 43% of intermediaries reported landlord demand for buy-to-let finance as strong or very strong in the third quarter, rising steadily from 22% in the comparable period last year.
Almost six out of ten intermediaries said they thought that the availability of buy-to-let finance had improved over the previous three months.
John Heron, managing director, Paragon Mortgages, said: “As demand for accommodation in the PRS continues to grow, we have seen a steady rise in the number of first-time landlords entering the sector, drawn by the potential for attractive yields relative to returns on cash and other investments and long-term capital growth.
“First-time landlords have been an important source of growth at a time when more established landlords with larger portfolios have found themselves constrained by limited equity.
“Improved availability of finance is critical to the continued growth of the PRS and to meet the demands of renters. Lenders will need to continue to innovate to support further expansion of the PRS.”
Article courtesy of Mortgage Solutions