First-time landlord products in decline – Moneyfacts
Products aimed at first-time landlords are falling as a proportion of whole buy-to-let market, Moneyfacts.co.uk research shows.
As of this month products available to first-time landlords represented 68% of the market, down from 73% in April last year and 81% in April 2015.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, blamed the fall on buy-to-let regulation, including the Prudential Regulation Authority’s stress tests of the sector.
She said: “This extra regulation means borrowers will face added checks and questions about their finances.
“New landlords have missed out on the buy-to-let boom, as they now have a smaller percentage of the market to choose from, following a drop in availability of 13% over just two years.
“This can be explained in part by the uncertainty that exists in the market at current, which has made some providers slightly more risk-averse.
“By their very nature, first-time landlords lack experience in managing rental properties, and this is considered more of a risk now than perhaps it once was.”
Despite the pressures on first-time landlords the overall buy-to-let product count has continued to rise significantly from 650 in April 2015 to 956 in April 2016 and finally 1,047 this month.