Seven out of ten intermediaries said less than 30% of their buy-to-let enquiries came from potential first-time landlords.
While just over one in ten said that over half of their buy-to-let enquiries came from potential first-time landlords looking to enter the market.
Alex Hammond, PR, brand & communications manager at Kensington, said: “There is certainly some appetite from first-time landlords who look to enter the buy-to-let market, attracted by the potential returns and strong demographics that underpin the sector.”
But he added: “the quick-win capital gains that, anecdotally at least, attracted so many ‘dinner party’ landlords to enter buy-to-let are no longer available.”
Hammond said that the main attraction of buy-to-let was the strong rental income with steady capital appreciation over the long term.
“This is more suited to landlords who have the vision and ability to take a longer term view, which is why the market is so appealing to experienced investors who are looking to grow their portfolio,” he continued.
“Lenders need to be able to identify the different types of buy to let client an intermediary will encounter and build products that appeal to both first time investors and experienced landlords.”
The lender asked 681 mortgage intermediaries what percentage of their buy-to-let enquiries were from potential first-time landlords looking to enter the market.
