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Buy-to-let activity down by 26% year-on-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.
The latest research from Connells Survey & Valuation suggests that the buy-to-let sector is struggling.
Data from the report indicates valuations were down by 26% over the course of the last year, following a year full of significant legislative alterations.
Rises
Despite the slowdown seen in the buy-to-let sector, overall housing market activity during December 2016 was up by 8% on December 2015. What’s more, activity was 40% up from December 2014.
John Bagshaw, corporate services director of Connells Survey & Valuation, observed: ‘Looking back over the year, the market has regained a great deal of its strength with consumers’ confidence on the mend.’[1]
‘Rates are low and employment is high-that’s a great recipe for a healthy housing market. And the buy-to-let market’s loss has been owner-occupiers gain as those looking to get on the ladder or trade-up have been left facing less competition for the properties they want to buy,’ he added.[1]
Selling
Valuations for those selling property rose by 25% between December 2015 and December 2016. During the same period, valuation activity for those looking to remortgage rose by 19%.
Continuing, Bagshaw said: ‘The housing market has been recovering since September and had a great December. Compared to 2015 it looks good. Compared to December 2014 it looks exceptional. First-time buyers and people selling property have regained much of the confidence they lost in the wake of the Brexit vote.’[1]
Buy-to-let activity down by 26% year-on-year
‘With interest rates still at record lows, many buyers are taking the opportunity to buy property that would have been regarded as a bargain at that price just of a couple of years ago.’[1]
According to the report, the number of property sellers was up by 32% over the course of the year. In addition, remortgage activity was up by 68% as consumers have taken advantage of some very cheap mortgage deals.
Concluding, Mr Bagshaw noted: ‘Looking back over the year, the market has regained a great deal of its strength with consumers’ confidence on the mend. Rates are low and employment is high –that’s a great recipe for a healthy housing market.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/buy-to-let-markets-loss-has-been-owner-occupiers-gain
