Buy-to-let product availability has risen to a record high over February, the latest analysis from Moneyfacts has revealed.
The analysis found overall buy-to-let product availability rose to 3,560 deals this month, its highest count on Moneyfacts’s electronic records.
There was also a month-on-month rise of 92 five-year fixed deals, and a rise of 114 two-year fixed deals.
Moneyfacts finance expert, Rachel Springall, said: “Landlords searching for a new deal will find the choice of buy-to-let mortgages has hit a record high, which could instil a sense of optimism.
“Views are mixed on how the buy-to-let market will fare this year, but lenders are clearly working hard to attract new business, such as those launching new deals at higher loan-to-value ratios, and even deals created for a limited company.”
Moneyfacts detailed how this rise in product numbers was distributed between two-year and five-year fixed rate BTL across all LTVs.
For two-year products, availability increased from 1,130 in January to 1,244 in February while, for five-year products, it rose from 1,479 to 1,571.
Springall pointed out that both of these counts represent their own record highs for each of their respective categories.
Springall added: “Affordable housing remains in short supply, so demand for rental properties continues. However, rising costs are taking their toll on prospective landlords.
“A recent study by Hamptons estate agents showed the proportion of home purchases by landlords has fallen below double digits to 9.6 per cent of house sales in January, a record low since records began in 2009.
“The margin of profit from rental income may well be tighter than in previous years, due to several factors, including the cull of mortgage tax relief and the expense to cover EPC requirements.
“Property is still regarded as a safe long-term investment, but both new and existing landlords would be wise to seek advice to assess the latest deals available to them and if it’s still viable to retain their portfolio.”
tom.dunstan@ft.com
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