18 Feb

Buy-to-lets surging in UK

Buy-to-lets surging in UK

New research from Connells Survey and Valuation has indicated that the UK's buy-to-let sector is grew ahead of other areas of the housing market in January.

The report found that it was the best performing sector, with 37 per cent growth since the previous month. Although most of the housing market saw a slow start to 2015, the buy-to-let sector had the smallest drop, with just four per cent since December 2014.

According to John Bagshaw, corporate services director of Connells Survey & Valuation, the findings suggest that the market is starting to bounce back from a disappointing performance at the end of 2014.

Buyers are now "spoilt for choice" with a record number of mortgages on the market, he said, which is making people invest more.  

There has also been an upturn in the number of first-time buyers purchasing houses, as it was the only other sector that demonstrated an increase in valuations activity. 

On a month-on-month basis, activity for first-time buyers increased by three per cent, but on an annual basis it suffered one of the biggest falls of 28 per cent.

In contrast, people already on the property ladder slowed their activity. According to the report, activity dropped by four per cent monthly, and fell by 23 per cent compared to January last year. 

In a similar fashion, there was a drop in levels of remortgaging on both monthly and annual figures. Since December, recent activity fell by 25 per cent, while it decreased by 28 per cent compared to January 2014.

Overall, activity in the property market fell by four per cent compared to December 2014, and was down 23 per cent on an annual basis.

Mr Bagshaw said the rush in first-time buyer activity was down to people trying to secure a good deal before the Funding for Lending Scheme (FLS) ended at the end of January 2014. 

This policy has also boosted the housing market - particularly for first-time buyers - by lowering mortgage rates, he added.ADNFCR-1222-ID-801775893-ADNFCR

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