The number of options available for Buy-to-Let landlords has reached its highest level since the financial crisis, according to Moneyfacts. As of the end of February 2019, landlords had the choice of a huge 2,162 Buy-to-Let mortgage products.
The largest number available prior to this was in October 2007, when there were 3,305 products on the market.
This will come as welcome news to UK landlords, especially in the light of changes to the Buy-to-Let sector in recent years, like the tenant’s fees bill, stamp duty surcharge and stricter affordability testing.
Within the last year alone there has been a substantial increase of 397 products and a huge 706 in the last two. Providers are continuing to offer landlords a wider selection of products amidst the current uncertainty in the property market, says Moneyfacts.
This comes at a time when the costs between buying and renting are the narrowest they’ve been for nine years, according to Halifax. And a time when a fifth of the UK population are living in privately rented accommodation, according to the English Housing Survey.
Using a three-bedroom property in the UK as an example, the data from Halifax defines housing costs as mortgage repayments, maintenance, repair, minor alterations, insurance costs and income lost through saving for a deposit.
Monthly payments for this property type came to, on average £729 per month in December 2018. In comparison, the average monthly rent on the same property was slightly more at £759. This means that due to sustained demand from tenants and comparable costs, purchasing a Buy-to-Let property remains an attractive investmentfor some.
If you’re a landlord and want to make the most of the large number of products available to youand the large number of Brits renting, contact your adviser today.