Latest Research from Connells Survey and Valuation has found that , during August , activity in the buy to let sector saw a surge of 12.7%- suggesting that the changes to tax and stamp duty were only a short term problem for the sector.
John Bagshaw, corporate services director of Connells Survey and Valuation, commented: “Now the effects of the government’s legislation have been digested by lender and investors alike, buy – to – let activity has increased sharply. The markets fears over the impact of Brexit are calming too and the Bank of England’s decision to cut the bank base rate last month for the first time in seven years may also have a psychological impact on property investors.
Encouraging economic data, high levels of employment and fading fears of recession have also injected life into the sector. While we can still see the impact of the last Governments damaging set of changes to legislation in year on year numbers, August’s surge in activity highlights the resilience of the buy to let sector.”
First time buyer activity saw the strongest overall increase in valuations and has driven August’s housing market, with valuations up 6.8% on July and 19.6% on an annual basis.
Remortgaging activity has also seen an increase in valuations on both a monthly and an annual basis .On a monthly basis, remortgaging valuations saw a growth of 4.2% and a 1.5% increase year on year to August 2016.
Across all sections of the housing market, overall valuation activity has risen by 5.1 % on a monthly basis, between July and August. On an annual basis, there was also a slight increase of 0.2% more valuations carried out that in August 2015.
John Bagshaw continued “First time buyers have enjoyed a month of growth and the sector is continuing to thrive following a strong July – given first time buyers are the engine of the property market, this is very significant. August has also seen a surge in activity in the remortgaging sector, partially fueled by the interest rate.
Overall market activity remains steady and fears of a post Brexit slump have failed to emerge. In the first full month after the Bank of England’s decision to cut interest rates, the buy to let market has a seen a surge in activity. Powered by low interest rates, Landlords have taken the opportunity to remortgage. “
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Ian Chambers @HoskinHomeLoans
