Buy to let market still attractive to first time landlords

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Research by Sainsbury’s Bank has revealed that 9% of British adults are interested in investing in the buy to let market.

If all these people bought buy to let property, this would equal an extra 4.8 million extra residential landlords.

Of the people considering becoming landlords, 29% said this was due to receiving an inheritance, and 35% said that a change in income had promoted a search for good financial investments. Around 64% of people were not aware of the full range of buy to let commercial mortgage options available to purchase property.

Over half (51%) of potential investors want to buy a house, with 46% looking at new build property.

Landlords have faced higher costs from stamp duty rises and reduction in mortgage payment tax relief. Sainsbury’s research shows that this has not put off many people wanting to enter the buy to let market. Compared to other investment opportunities, purchasing buy to let property in the right location mean that investors can achieve good returns from rental yields and capital growth.

David Buxton, head of banking at Sainsbury’s said that:

“Demand for rental properties is showing no signs of slowing down.”

Several lenders have reduced interest rates on buy to let mortgages in August 2018. A mortgage broker can source the best mortgage interest rates for new landlords. They are also a good source of advice about investing in both residential and commercial property. Brokers can help to submit the required documentation to support a commercial mortgage application.

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