Buy to let on increase
A report from Connells Survey and Valuation (https://www.connells.co.uk/) suggests that buy to let is on the increase. Data from the report shows that, in return, letting agents could experience quite an increase in demand from buy to let landlords.
The Connells data indicates that there were 33% more buy to let valuations in May this year than during May 2014, a fact which would point to the country experiencing a buy to let boom.
Property valuations for first-time buyers dropped 4% during the same period. It is suggested that private rental sector landlords are taking advantage of the current economic climate to increase their portfolios and capitalise on the high number of people renting rather than buying their own property.
The Connells report also examined re-mortgaging during May. They found a 31% increase in the number of re-mortgage valuations carried out over the last 12 months, with a 9% month-on-month increase.
The figures suggest that over the past 12 months there has been an 8% increase in homeowner valuations. Connells credit this to an increased feeling of optimism among property owners.
John Bagshaw, corporate services director of Connells Survey and Valuation, commented: “Confidence is returning to the housing market, but it is by no means evenly spread across all sectors.
“The post-election lifting of the threat of state-imposed rent caps and tenancy controls has led to an activity surge from the buy-to-let market. But aside from landlords, people seem more inclined to stick with the status quo for now.”
Victor Jameson of Cambridge letting agents New View Residential commented: “Cambridge has had a strong buy to let market for many years. This goes hand in hand with a high student population and a vibrant tourist economy.
“A number of new property developments in Cambridge seem to have been snapped up by overseas buy to let investors, although some seem slow to bring these vacant dwellings to market. The people of Cambridge desperately need more property, so I hope this is not the beginning of an investment trend seen in parts of London”.
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