A rise in BTL product numbers and new landlords?
Record-breaking numbers of new prospective tenants are fuelling growing demand for BTL products among UK property investors, with product choice returning closer to pre-pandemic levels.
Newly released figures from Moneyfacts revealed that 2,709 buy-to-let products were recorded at the beginning of July. This was said to be the highest number of BTL options on offer in the buy-to-let sector since 2,897 in March 2020, 971 products higher than July 2020 when availability was limited due to product withdrawals following the start of the pandemic.
Additionally, Moneyfacts found that the average overall two- and five-year fixed buy-to-let rates have fallen when compared to July 2019. However, year-on-year both the two- and five-year fixed average rates for all LTVs are up 0.37% and 0.31% respectively.
Landlords with 40% equity or deposit will find that even though their level of product choice is lower than it was this time last year, they are amongst those who might be able to secure a competitive new deal as the average two- and five-year fixed rates in this bracket both remain 0.03% lower year-on-year.
With demand for rental accommodation high and savings rates low, we are certainly experiencing more interest from an array of potential new landlords as well as professional ones who are looking to expand and diversify their portfolios. And we fully expect this trend to continue in H2 2021 and beyond as the spotlight on the private rented sector continues to shine bright.