As we close in on Q4, I’m sure many people would simply like to draw a line under 2020 and move on. However, there is another full quarter to deal with. Thankfully, we are now in a position where we can look forward with greater levels of optimism than previously seen at the beginning of the previous two quarters.

When it comes to buy-to-let, Q4 will be a quarter of opportunities for landlords as we continue to build on the large amount of resilience shown throughout the sector over the past six months. Despite some lingering – and justifiable – caution, we have seen a broadly upward trend in the number of available BTL products since May. Average rates remain highly competitive and lenders’ appetite for business has steadily grown over the Summer months.

That’s not to say it’s all plain sailing from here. BTL lenders are having to constantly adjust to economic shifts and re-evaluate product ranges, criteria and policy accordingly. Landlords have also had to adapt over the lockdown period. To better understand the impact the pandemic has had on investor activity, Leeds Building Society recently assessed the latest figures from the CACI Mortgage Application Reporting Service. These showed that between March and mid-July there was a higher volume of buy-to-let mortgage applications recorded than residential. It also highlighted that landlords are looking for different property types or searching in new locations as a result of COVID-19.

The market data is supported by additional insight from the Society’s own research at the end of June. This focused on how landlords’ needs and attitudes to property have changed since the start of lockdown. Of those surveyed, 79% of landlords who were considering investing in a buy-to-let property before the pandemic said their plans had changed. Half still wanted to buy but were taking a fresh look at their plans. 29% were said to be reconsidering the type of property they are looking to buy and 29% were looking at new locations. 20% were reassessing what they are willing to invest, while 22% were rethinking their timings.

It would be interesting to see if, and by how much, these numbers may have shifted as we are seeing growing numbers of landlords taking advantage of some positive market conditions – including stamp duty relief, low interest rates and heightened tenant demand. The demand for rental property is likely to be further exacerbated as first-time buyers have been hit with a double whammy as the availability of low-deposit deals has plummeted, while rates on those remaining have surged since lockdown. According to research from Moneyfacts, the number of mortgage deals for borrowers at 90 per cent loan-to-value has fallen from a pre-lockdown figure of 1,184 to just 78 – at the time of writing. While average rates for a two-year fixed in this category have surged by almost 1 percentage point from 2.57 to 3.54 per cent.

These figures help outline the continued importance of the private rented sector and how it will prove to be the backbone of the mortgage and property market in Q4 2020 and beyond.