Choice of deals for first-time landlords reaches new high
The choice of deals for first-time landlords has reached a new high, according to Moneyfacts.
In the past 12 months, 297 more options have surface which is the biggest year-on-year leap for October.
In July 2019, there were 1,405 deals overall available for first-time landlords.
This figure then rose to 1,431 in August and year-to-date has reached 1,474.
Rachel Springall, finance expert at Moneyfacts, said: “It’s encouraging to discover that first-time landlords have a huge choice of deals right now, particularly during a time of economic uncertainty.
“However, landlords will need to keep a close eye on their projected profit margins, especially as tax relief on mortgage interest will be scrapped in April 2020.
“Landlords are already feeling the squeeze to make a decent profit within the buy-to-let sector, with the average landlord left with just £2,000 from an annual return of £13,000 once landlord costs are paid, according to recent research by lettings platform Howsy.
“So, while lenders work hard to accommodate prospective investors with an array of buy-to-let options, the costs of managing a property or concerns about a volatile property market could deter some from investing in this arena altogether.
“In fact, according to the Land Registry, house price growth slowed to 0.70%, the lowest in almost a decade.
“As it is a mere few months until tax reliefs are scrapped, it’s vital consumers seek independent advice to work out whether buy-to-let is a viable investment opportunity for them and to be made aware of upcoming changes facing the market.”