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Buy-to-let activity down by 13.3% in last year
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Buy-to-let activity fell by 13.3% in the last year, according to new data provided by Connells Survey & Valuation.
The figures are unsurprising given the number of tax changes introduced by the Government over the last year. However, there are positive signs that private landlords will return to the sector in the coming twelve months, with a 4.5% month-on-month rise in valuations recorded in October.
Pick-ups
Despite the annual slowdown in the buy-to-let market, activity levels have risen in other areas of the market. There was a significant 6.4% increase in the number of property valuations, in comparison to the same month in 2015.
John Bagshaw, corporate services director of Connells Survey & Valuation said: ‘Total valuation market activity has improved over the course of the last twelve months-despite the attack on the buy-to-let market by the previous chancellor. Recently, as landlords have started to come to terms with the stamp duty surcharge and the announcement of the changes to treatment of mortgage interest, the buy-to-let market has started to pick back up.’[1]
Buy-to-let activity down by 13.3% in last year
Remortgaging rises
Encouraged by competitive deals and record low interest rates, remortgaging property owners have seen a substantial rise in business. There has been a 16.8% year-on-year increase in the number of remortgage valuations in October, with homeowners lured by attractive deals.
Mr Bagshaw continued by saying: ‘Remortgagers have been one of the most active segments of the market. As rates have fallen over the last twelve months, savvy homeowners have been taking full advantage of the benign borrowing environment and competition between lenders-borrowers can afford to be more selective than they could twelve months ago.’[1]
‘Homeowners on expensive standard variable rate mortgages are making big savings moving onto the best fixed and discounted rate mortgages around.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/buy-to-let-activity-levels-drop-13-3-but-predicted-to-grow
