Number of Buy-to-Let deals highest in almost a decade

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The number of buy-to-let mortgage deals has reached its highest level since December 2007 according to the Moneyfacts UK Mortgage Trends Treasury Report.

 

On a monthly basis the amount of buy-to-let deals has risen from 1,613 to 1,725. This is in comparison to 1,339 that were available in September 2016.

 

The buy to let market has understandably had a bumpy ride of late considering all the regulation and tax changes introduced by the government. Despite this the market seems to be buoyant, with the number of available products reaching the highest point recorded since 1,942 products were recorded in December 2007 almost a decade ago.

 

This shows that the market has clearly recovered from the tougher affordability rules that were introduced on 1st January when the market saw a dramatic drop in the number of products available to landlords. Since then the number of deals available has gone from strength to strength from month to month culminating in a rise of 7% the highest month-on-month growth seen in 2017.

 

Despite the reduction in buy-to-let activity in the first quarter of this year competition amongst lenders has remained high as providers fight to retain their standing in a diminished market. This is good news for landlords as rates have fallen with the average two-year buy-to-let fixed rate now 2.86% down from 2.91% in August.

 

Currently lenders are getting ready for further changes at the end of September which will see lenders apply stricter standards to those with four or more properties. This means we could see a further increase in the amount of products to the two different types of borrower.

 

Charlotte Nelson, a Finance Expert at Moneyfacts, says: “The extra pressure on the buy-to-let market could be a turning point, with the competition that is currently alive and well amongst providers perhaps starting to ebb as they shift their focus to ensuring the new regulation is followed.”

 

At Discount Landlord we are able to provide you with competitive Landlord Insurance quotes, for buy to let properties and even unoccupied properties.  Give us a call on 0800 294 4522 today!

14th September 2017