A growing number of aspiring landlords are relying on strict saving regimes, extra work and family support to finance their first buy-to-let property, according to new research from specialist lender Market Financial Solutions.

The study, carried out by Opinium on behalf of MFS, surveyed 2,000 UK adults and revealed that one in three hope to purchase a buy-to-let property in the future.

The aspiration is particularly strong among younger adults, with 54% of those aged 18 to 34 saying they intend to invest in the rental sector.

Among those planning to enter the buy-to-let market, more than half (52%) are setting aside money each month to fund their investment. A further 44% are working additional hours or shifts to boost their income and speed up the process.

FAMILY HELP

The research also highlighted the role of family in helping new entrants to the sector. A third of would-be landlords said they are living with friends or family to save on housing costs, while 30% have either sought or would consider seeking financial help from relatives.

For some, owning their own home is not necessarily a prerequisite to becoming a landlord. Nearly a quarter (24%) of those who do not yet own property said they would consider purchasing a buy-to-let property before buying a home to live in themselves.

Paresh Raja, chief executive of Market Financial Solutions, said the findings point to the continuing appeal of property investment despite the challenges posed by today’s market conditions.

“Millions of Britons still have ambitions to invest in property and become a landlord,” he said.

“But with the rise in property prices over the years, would-be buy-to-let investors today may find it more challenging to build a portfolio than was the case 20 or 30 years ago, which is why it’s so interesting to see the different financial strategies they are deploying to turn their ambitions into a reality.”

Raja also noted the specific difficulties facing first-time landlords when it comes to securing finance, particularly in situations where individuals intend to purchase a buy-to-let property before owning a residential home of their own.

“For instance, someone seeking a buy-to-let mortgage to purchase an investment property before they own their own home (as our research shows can be the case) may raise questions for a lender as to whether the borrower will indeed let the property or move into it themselves,” he said.

“That’s just one example of the barriers first-time buy-to-let buyers can face in the mortgage application process, which is why brokers play such an important role in connecting those individuals with lenders best placed to support.”