Activity by first-time landlords entering the market is continuing to speed up.
According to a poll of mortgage intermediaries, the proportion of all buy-to-let cases from first-time landlords was 37% in the third quarter of this year, up from 22% in the second quarter, and the highest level since the financial crisis.
The poll, by specialist lender Paragon Mortgages, also found that 43% of mortgage brokers reported strong or very strong demand for buy-to-let finance.
In addition, almost six out of ten intermediaries (56%) said they thought that the availability of buy-to-let finance had improved over the previous three months.
John Heron, managing director of Paragon Mortgages, said: “We have seen a steady rise in the number of first-time landlords entering the sector, drawn by the potential for attractive yields relative to returns on cash and other investments and long-term capital growth.
“First-time landlords have been an important source of growth at a time when more established landlords with larger portfolios have found themselves constrained by limited equity.”
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