This is according to data from Moneyfacts.co.uk which revealed the proportion of mortgage deals catering for borrowers new to buy-to-let had increased by 4% in the last year.

This is despite overall availability falling across the buy-to-let market as a whole.

But while there are more deals for first-time landlords, the average fixed rates have increased with a two-year deal rising by 0.30% year-on-year and the five-year fix increasing by 0.35%.

Moneyfacts said these hikes were steeper than those seen in the overall average rates and suggested lenders may be pricing risk into deals for ‘untested’ landlords.

Indeed, Eleanor Williams, finance expert at Moneyfacts.co.uk, said factors such as house price inflation and the fact rock-bottom savings rates were making it difficult to build deposits, combined with uncertainty in job stability and income levels was driving buy-to-let.

She thought potential first-time residential buyers were opting instead for the less onerous commitment of staying in private rented properties.

“Furthermore,” she added, “the buy-to-let sector as a whole has shown itself to be relatively resilient and robust in the face of an unprecedented year, and therefore there may now be those who are considering capitalising on the opportunity to invest in the sector for the first time.”

Rates

The only concern was the rise in rates in this sector of the buy-to-let market. Williams said at 3.10% and 3.66% respectively, the two and five-year fixed rate averages for first-time landlords had increased by 0.30% and 0.35% when compared to February 2020.

Additionally, these increases were more significant than those seen in the overall buy-to-let average rates, where the equivalent averages for all landlord types rose by 0.22% and 0.12% respectively.

Williams added: “Therefore, would-be FTLs may wish to consider their options carefully to ensure they are securing the best possible deal for their particular circumstances, as although these averages are higher, there are still competitive deals available.”

“Careful planning and ensuring that they protect any investments will be vital in these uncertain times.”