There has been a steady increase in the number of first-time landlords entering the buy-to-let market according to intermediary partners (IFA’s and mortgage brokers) of Paragon Mortgages.

Paragon’s quarterly trends survey shows that intermediary buy-to-let business has been growing from first-time landlords since mid-2009.

During Q1 2013 22% of intermediaries’ buy-to-let business was from first-time landlords. Although less than the peak of 24% recorded in Q3 2012 it is above the average 20% recorded since Q4 2010.

John Heron, Director of Mortgages, said: “The dynamics of the landlord market are changing. Professional landlords were typically the back bone and driving force behind growth in the market. However, in recent times, we are seeing them becoming more constrained in terms of being able to release equity and to secure new finance.

“Private investor landlords –those with between one and five properties – will be the ones to pick up the slack. These landlords have access to more flexible finance and are able to agree deals much more quickly.

“These landlords are financially astute individuals who typically have other investments such as equities and gilts or bonds, and are well-placed to cope with fluctuations in the economy and the general demands of being a landlord.”

Unsurprisingly the number of buy-to-let cases from first-time landlords was at its peak in Q2 2002 when the buy-to-let market was experiencing its ‘boom’ period. During 2008 demand from new landlords fell to its lowest level, largely attributed to the general financial crisis.