The buy-to-let sector is resilient and recovering from the effects of Covid-19, Moneyfacts data has suggested.
The sector has contracted since 1 July, with a drop of 78 products, leaving 1,660 deals available.
While this is still fewer than the 2,897 deals prior to the pandemic taking hold, it shows an improvement on the 1,455 products on the market on 1 May.
The average rates for two and five-year fixed buy-to-let deals are 2.72 per cent and 3.11 per cent respectively, which Eleanor Williams, finance expert at Moneyfacts, cited as positive news for the market.
She said it shows there are competitive deals to be had in the current low base rate environment and indicates an appetite to lend from providers in this sector.
Since 1 August, average two and five-year rates have risen by 0.06 per cent and 0.05 per cent respectively, which may prompt some landlords to consider their options before these potentially increase further.
“Over the last six months, the buy-to-let sector has been a little more resilient than the residential market in terms of product choice,” said Williams.
“Now that the UK has officially fallen into a recession, some landlords could be concerned regarding the future of their beleaguered sector.
“However, the increase to the stamp duty land tax threshold will have come as welcome news to many landlords and potential investors in the sector, who may be enticed by the potential savings this offers.
“Landlords looking to invest in the buy-to-let sector could see this as an opportune time to explore their options, especially if they think that average rates may continue the upward trajectory we have witnessed over the last two months.”
Kevin Roberts, director of Legal & General Mortgage Club, said data from the mortgage club’s SmartrCriteria tool, which tracks product searches by mortgage advisers, has shown buy-to-let enquiries increase by two-and-a-half times between April and July this year.
“The buy-to-let market has seen its fair share of challenges in recent times, but it’s an area where we are now seeing increased activity from consumers since the lockdown eased,” Roberts said.
“Data from Legal & General Mortgage Club’s SmartrCriteria tool, which tracks product searches by mortgage advisers, has shown buy-to-let enquiries increase by two and half times between April and July this year.
“Not only are we seeing more existing landlords expanding their portfolios, but new ‘part-time’ landlords are also looking to take advantage of the recent stamp duty holiday to step into buy-to-let.
“Searches by advisers for mortgages for first-time landlords have increased four-fold since April.”