The average interest rate for buy-to-let deals is currently 4.79% down from the average of 5.00% from February last year and 5.31% from February 2010 when there were 243 deals available.
As the availability of buy-to-let deals has increased, the average interest rate has declined.
Louise Holmes, spokeswoman for Moneyfacts, said: “These latest figures, particularly a reduction in the average rate, should make pleasing and encouraging reading for landlords and property investors.
“During the peak of the credit crisis the number of buy-to-let deals shrank considerably as lenders saw it as a high risk area of the market.
“Many aspiring homeowners have had their property dreams dashed due to strict lending criteria and large deposits, meaning the only option left is to rent.
“This increase in demand for rental properties has resulted in a degree of competition returning to the buy-to-let sector, giving it a well-needed boost.”
