With recent regulations making buy-to-let a less attractive investment opportunity, it comes as a bit of a surprise to see that almost 3 out of 4 prospective investors view property as the best, most secure investment in the market. 

With 83% stating they were unlikely to sell their property over the coming year, despite the change in regulations, highlight that although buy-to-let may not be as strong as it once was, many investors still see value in the investment type.

Investors looking to become landlords should feel reassured by the confidence that investors are feeling in this asset class, and with the choice of buy-to-let products at an all-time high, now could well be the time to invest.

Findings from Moneyfacts highlight that available deals have increased significantly also over the past five years, up to over 700 deal types since 2014 alone.

The hurdles cannot be ignored

Naturally, entering the buy-to-let market has been faced with greater hurdles in recent years. It has been two years since the PRA introduced tighter lending criteria, and on the face of it this appeared to have reduced interest for first time landlords. 

Although we are seeing this rise in deals available, this does not correlate to an increase in first time landlords. Whilst the increase in deals available is good news, the recent changes to tax is proving to be a financial barrier to those looking to invest in property. 

ONS data has shown that private rental prices in the capital rose by 0.9% over the past 12 months, the highest growth we have seen since Q3 2017. This, we can assume, is due to the loss of tax relief that is pushing away potential landlords seeking alternative investments as a means to grow money.

Options for first time landlords

With fixed rates for first-time landlords starting below 1.5% for fixed two-year deals, the associated upfront product fees have to be given some serious thought. 

Options can be available, such as longer fixed deals, that can provide better value for first time landlords. Prices have fallen in the sector since 2014, with the average five-year fixed rate for first time landlords falling by 1.6% from Q2 2014. 

With economic uncertainty dominating the market, combined with stricter lending criteria, it is not an easy time to enter the market, but it is not necessarily the worst time to enter, either. 

As always, make sure you seek independent financial advice when considering any investment, particularly an investment of this kind. Use a reputable advisor to ensure that you are fully aware of the best products and also the things you should be aware of. 

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