Buy-to-let’s have a great start to the year

It makes no sense to tempt fate in this marketplace, and one swallow does not make a summer, but the latest CML statistics for the buy-to-let sector in January and February appear to show a relatively strong start to the year.

These initial statistics certainly chime with our own experience as we moved into 2017 with plenty of enquiries, applications and activity. This all seems to set a foundation for a solid set of figures for 2017.

Overall, the statistics are clear on where the current balance of power lies within the buy-to-let sector right now with re-mortgage activity in the ascendency. During January, purchase activity was at an eight-month low, but as the CML itself said, there is always a winter lull.

That said, the split is approximately two-thirds re-mortgage-one-third purchase and while experts fully expect activity levels to increase, that split may well continue for some time. However, it is also muted that landlords are not stupid and they will have perhaps held their counsel until they saw what the Budget statement might have brought, particularly in terms of any stamp duty U-turn

Add into this, this month’s tax changes on mortgage interest tax relief and you can perhaps not blame landlords for waiting a little to see how things might have played out.

The figures for January and February do however show how the market has shifted and reshaped itself, certainly since the introduction of the extra 3% stamp duty charge, plus of course many landlords brought forward their purchasing prior to the deadline in order to avoid the increase in costs.

If you are looking for a new or re-mortgage, please get in touch and one of our fully qualified advisers will be happy to help.