Opportunities for first-time landlords are expected to rise over the course of 2021, according to Moneyfacts.
Opportunities for first-time landlords are expected to rise over the course of 2021, according to Moneyfacts.
Data collected by the firm outlines that the number of first-time landlords has increased over the last year by 4%.
Overall, 65% of buy-to-let mortgage deals are currently within this demographic.
The average fixed rates for first-time landlords have increased, with the 2-year fixed rate average rising by 0.30% year-on-year and the 5-year equivalent rising by 0.35% over the same period.
According to Moneyfacts, these increases are steeper than those seen in the overall average rates, which it believes indicates that lenders may be pricing risk into deals for untested landlords.
Eleanor Williams, finance expert at Moneyfacts, said: “Factors such as house price inflation, rock-bottom savings rates, uncertainty in job stability and income levels may play a part in a number of potential first-time residential buyers opting instead for the less onerous commitment of staying in private rented properties.
“Furthermore, the BTL sector as a whole has shown itself to be relatively resilient and robust in the face of an unprecedented year, and therefore there may now be those who are considering capitalising on the opportunity to invest in the sector for the first time.”
