While some industry commentators believe that the slowing down of buy to let mortgage activity suggests a slump in the market, there were still over 5,000 buy to let mortgages taken out in December 2018 - a 5.6% drop on the corresponding month in 2017 - new figures reveal.
“However,” says Steve Bradley, MD of property insurance specialist UKinsuranceNET, “in 2018, there were 66,400 new buy to let home purchases completed, which is only 11.5% less than those completed in the whole of 2017.
“Yes, there has been a drop in buy to let (BTL) home purchases. But it’s hardly been the Armageddon for the BTL sector predicted by the doom and gloom merchants following the stamp duty and income tax crackdown in 2017/18 and the ongoing Brexit dramas”
Mr. Bradley also points to the latest annual London Letting Report from Foxtons that shows that tenant demand is increasing in London. Their data reveals the highest-ever level of new prospective tenants registering per new rental listing in 2018.
London’s Zone 2 saw the biggest rise in tenant registrations with a 13% increase in demand. The stock of properties in that zone overall fell with 11% fewer homes coming to market compared with the previous year.
Mr. Bradley summarises: “With demand outstripping supply, this provides a potential benefit to new and existing landlords. I think these are exciting times for the BTL sector – despite the naysayers.”