Northern buy-to-let market builds
Recent research has indicated that the North of England is having a greater influence on the buy-to-let market.
According to a report from Commercial Trust Limited, the North has seen a substantial increase in the proportion of buy-to-let purchase applications over the first three quarters of this year.
The most significant growth was observed in the North East at 77.6%, with Yorkshire and the Humber just behind this at 73.2%.
Whilst the majority of buy-to-let purchase applications are taken out in London, the capital has seen a substantial drop in business share during the first three quarters of the year. Compared to the same period in 2016, the number of buy-to-let purchase applications in London has fallen by 25.4%.
Commenting on the surge in Northern buy-to-let activity was Andrew Turner. The chief executive at Commercial Trust Limited drew attention to the greater demand and lower prices attracting investors to the region.
” With property prices typically cheaper – and a strong demand for private rental homes from a workforce in regenerated cities and from thriving student populations, there is plenty of incentive for those looking to invest in property, to look North. The latest Your Move Index confirmed that the North East and the North West deliver the best yields for buy-to-let landlords in England and Wales, so it is little surprise to see shrewd investors taking advantage of low mortgage rates, high rental demand and cheaper property prices.”
However, he went on to mention that the Southern buy-to-let market should not be underestimated despite the fall in size it had recently seen.
“Our latest data also shows that London and the South East continue to play an enormous role in purchase applications nationally, but that as two distinct regions, we have seen the South East close the gap on the Capital during the first three quarters of 2017. This may well be in part down to the impact of the 3% stamp duty surcharge on second homes, which came into effect in April 2016. With property prices typically more expensive in London, the stamp duty levy is often significantly more, so perhaps landlords are casting their net further afield.”