Despite the huge changed in the buy to let sector including changes in stamp duty and the impending changes in tax relief, we have a significant rise in buy to let activity in the past two months including the sale of 8 flats in a block in Truro that we manage.
A national survey company has also reported a rise and says its valuations for buy to let mortgages are 0.4 per cent up on the last year. Now 0.4% doesn't sound a lot but when you look at the fact that there was aprox 1.2 million residential property sales in 2015 (Office of National Statistics figures) and roughly 15% of these were buy to let purchases that would give a growth figure in real terms of 27,000 properties being bought!
Sadly the Council of Mortgage Lenders (CML) have just released figures that show that mortgage approvals on BTL lending is down year on year so the information coming through is confusing. With the media painting a gloomy picture of the housing market and with shock headlines asking us to believe that 1000's of investors are selling their BTL portfolio rather than increasing it, the facts don't seem to agree!
Locally here in Truro we have sale agreed 8 flats in the same building with 7 of the 8 going to investors looking to continue renting. The 8th sale went to a father who is 'renting' the flat to his son as well so it's a fully tenanted building really! Even today I had a lady visit my office who is due to complete on a house purchase (in cash) next week and will be renting it out - a much better return that leaving the money in the bank she told me, and who am I to argue!
Advice is free and I am always happy to spend the time if you are looking to buy locally. Call me at the office or email me firstname.lastname@example.org