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Buy-to-let market sees sharp rise in post-Brexit activity
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
New research from Connells Survey and Valuation has discovered that during August, buy-to-let activity surged by 12.7%.
This data suggests that alterations to stamp duty, taxes and the Brexit vote caused only short-term blips for the sector.
Sharp increases
John Bagshaw, corporate services director of Connells Survey and Valuation, noted, ‘now the effects of the Government’s legislation have been digested by lenders and investors alike, buy-to-let activity has increased sharply. The market’s fears over the impact of Brexit are calming too and the Bank of England’s decision to cut the base rate last month for the first time in seven years may also have a psychological impact on property investors.’[1]
‘Encouraging economic data, high levels of employment and fading fears of a recession have also injected life into the sector. While we can see the impact of last Government’s damaging set of changes to legislation in the year-on-year numbers. August’s surge in activity highlights the resilience of the buy-to-let sector,’ he continued.[1]
First-time buyers also saw a strong increase in valuations during the last month, with increases of 6.8% on July and 19.6% on an annual basis.
Remortgaging has also seen an increase in valuations, both monthly and annually, rising by 4.2% and 1.5% respectively.
Buy-to-let market sees sharp rise in activity post-Brexit
Thriving
Mr Bagshaw continued by saying, ‘first-time buyers have enjoyed a month of growth and the sector is continuing to thrive following a strong July-given first-time buyers are the engine of the property market, this is very significant. August has also seen a surge in activity in the remortgaging sector, partially fueled by in the interest rate.’[1]
‘Overall market activity remains steady and fears of a post-Brexit slump has failed to emerge. In the first full month after the Bank of England’s decision to cut interest rates, the buy-to-let market has seen a surge in activity. Powered by low interest rates, landlords have taken the opportunity to remortgage,’ he concluded.[1]
[1] http://www.propertyreporter.co.uk/landlords/btl-market-sees-flurry-of-post-brexit-activity.html
