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Number of BTL Deals Passes 2,000 for the First Time
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
In the last couple of years, we have seen turbulent changes in the property industry for both landlords and buy-to-let (BTL) providers. There have been various significant changes to regulations and taxation, such as the 3% Stamp Duty surcharge and the new Minimum Energy Efficiency Standards (MEES).
However, this does not seem to have had too drastic an impact on the market, as the latest research from moneyfacts.co.uk shows that the number of buy-to-let products has reached an all-time high. For the first time on record, it has passed the 2000 mark.
Charlotte Nelson, Finance Expert at moneyfacts.co.uk, has commented: “The buy-to-let (BTL) market has seen quite a rollercoaster ride over the past year, including multiple changes that have required both landlords and providers to rethink their options.
“However, this hasn’t appeared to deter providers, marking an increase of 464 deals in just one year, which has seen the BTL market break yet another record and rise past the 2,000 mark for the first time on moneyfacts.co.uk’s records.
“The Prudential Regulation Authority (PRA) rules launched at the end of September 2017, which saw lenders having to apply stricter standards to those with four or more properties, could explain the boost to product numbers. Providers may well have opted to offer two different products to cater to the different borrower types.
“Last week, moneyfacts.co.uk reported that the number of limited company fixed rate options were on the rise. These extra products, which cater for landlords looking to reassess their options after the tax changes, are yet another reason why the overall product numbers have been boosted.
“Amid this upheaval, the market has seen many landlords and aspiring landlords take a step back to assess their options and figure out whether they are making the right choice. As a result, BTL providers are now competing for a smaller pool of customers. Offering variety in their range is one way in which they can compete.
“While it has been a tough time for the BTL market, the fact that the number of available deals is still growing shows it is still a viable option. However, any borrowers considering becoming a BTL landlord should seek the advice of a financial adviser, to ensure this is the right choice for them.”
