Landlords continue to face financial pressure, despite recent cuts to buy-to-let (BTL) mortgage rates, research from Moneyfactscompare.co.uk found.
The average 2-year fixed BTL rate stood at 4.88%, with the 5-year fixed at 5.21% – both the lowest since September 2022.
Product choice for landlords also reached a record high, with 4,597 BTL mortgage deals available, the most since records began in November 2011.
There were still more 5-year fixed rates than 2-year options, and record numbers of deals at 75% and 80% loan-to-value (LTV).
Speculation about further tax changes in the upcoming Budget added to concerns for investors.
Megan Eighteen, president of ARLA Propertymark, said: “Landlords leaving the market is a continuous trend and is pushing up rents for tenants due to a growing supply and demand imbalance.
“Ultimately, it’s positive to see there is a glimmer of hope for those landlords looking to take out a buy to let mortgage as they become the most affordable they’ve been in years.
“However, successive governments have placed pressure on many other areas of a landlords finances for decades, and with the news of yet another blow for investors due in the upcoming Budget, the future of the private rented sector is concerning.”
Eighteen added: “We need to value every part of our housing ecosystem as the fundamental issue to tackle is the lack of homes for the nation.
“Many people rely on their rental home and if we’re not careful in ensuring a healthy and sustainable mix of homes of all tenures, many could find it increasingly difficult and unaffordable when looking to move.”
