Lenders are expecting more activity in the but-to-let market in 2016 than this time last year. A survey by the Bank of England stated 60% of lenders expected demand to grow over the coming months. All the early signs this year show they are correct as demand is up 27% on the same period last year. Buy-to-let investors face a 3% surcharge on stamp duty as of April this year and it is believed this has fuelled the market. Lending experts predict landlords will move quickly to buy or increase their portfolios before this surcharge comes into force. It is thought that as 2016 progresses applications will slow but both lenders and borrowers alike are confident of the future. Mortgage providers are keen to point out that there are many very good deals in the market place both fixed and variable rates. Even with all the proposed changes to buy-to-let taxation it is expected to be a strong year of growth for the buy-to-let mortgage sector. House prices in the UK continue to rise at a rapid rate thus making it very difficult for the first time buyer to get onto the property ladder. The demand for good quality rental property therefore continues to rises month on month. Landlords are anticipating rents will increase later in the year when the full effect of the tax changes come into force. These will be very interesting days ahead for the rental market and it is likely big changes will be taking place over the coming months.
