Buy to let mortgage sales down 39%

According to new data from Equifax Touchstone, July’s buy to let mortgage lending has fallen 39% in comparison to the same month a year ago.

Additionally, the average value for buy to let mortgages is down year-on-year, having fallen from £160,203 to £157,195. 

We have been saying that the stamp duty surcharge introduced in April would impact the housing market and these statistics suggest that is the case.

The impact of Brexit also has to be factored in. July – the first full month after the Brexit vote – buy to let mortgage sales were down 15.2%. That is in comparison to the June total which lead up to the referendum.

It is common knowledge that with Brexit and the numerous changes to the buy to let market implemented by the government that now is a turbulent time. But that is not the say that the market can’t be profitable or a good investment. The key is identifying rental hotspots and ensuring your property is up to the required standard. There are still huge opportunities in the market as tenant demand continues to rise and with insufficient numbers of new houses being built, this will continue to be the case.

What’s more, lenders are cutting their mortgage rates to entice investors as they realise the effect the stamp duty surcharge is having on the market.

It is still early doors and we don’t know the full effect/impact the stamp duty surcharge and Brexit will have on the buy to let market. Traditionally, there is a dip in mortgage sale volumes during the summer months of July and August. So it will be a few more months before the full effect can be identified.

At Orchard & Shipman we are more than happy to provide advice, support and guidance on any of the challenges facing landlords today. You can speak to one of our experts by calling 0203 301 5993 (England) 0131 516 9799 (Edinburgh) & 0141 428 3263 (Glasgow). Alternatively, you can visit our website to find out more about how we can help you; www.orchard-shipman.com.