Buy-to-lets remain strong and stable

The average buy-to-let loans and deposits have increased in 2018, new research has just revealed.

This has come about as a result of soaring property prices and the tougher stance taken by lenders on criteria and rental calculations.

The findings reveal that landlords borrowed an average of £16,800 more to buy property in 2018, in comparison to 2017. The average loan this year has risen to £187,500, up from £170,268 the year before.

Meanwhile, the average loan to value fell from 64.6% in 2017 to 60.7% this fiscal year. What’s more, landlords and investors paid out more for their properties year on year. The average property price in the South of the country last year was £309,000 up from £298,286 the year before.

Gross buy-to-let lending in April and May this year was at its highest monthly level since the additional stamp duty surcharge on second homes was implemented last April last year, according to the Council of Mortgage Lenders (CML).

Landlords are certainly feeling the pinch right now, but the raft of tax changes that came into force in 2016 do not appear to have dampened the buy-to-let market. In many towns and cities, landlords have increased their investment in buy-to-let property, despite the financial challenges that have been recently thrown at them by the Government.

Some very interesting figures indeed, this surely goes to prove the British public clearly see UK property as a good long-term investment.

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