New research just published has found that during August, activity in the buy-to-let sector saw a huge rise of 12.7%, suggesting that the changes to tax and stamp duty were only a short term problem for the sector and are now being factored into every asking price and offer submitted, just as with any other known costs an investor must consider.
Commenting on behalf of Connells Survey & Valuations, John Bagshaw states “Now the effects of the Government’s legislation have been digested by lenders and investors alike, buy-to-let activity has increased sharply. The market’s fears over the impact of Brexit are calming too and the Bank of England’s decision to cut the base rate last month for the first time in seven years may also have a psychological impact on property investors. Encouraging economic data, high levels of employment and fading fears of a recession have also injected life into the sector. While we can still see the impact of the last Government’s damaging set of changes to legislation in the year on year numbers, August’s surge in activity highlights the resilience of the buy-to-let sector.”
“Overall market activity remains steady and fears of a post-Brexit slump has failed to emerge. In the first full month after the Bank of England’s decision to cut interest rates, the buy-to-let market has seen a surge in activity. Powered by low interest rates, many landlords have taken the opportunity to remortgage.”
Many landlords have been taking advantage of a quieter time in the market over the summer to try to expand their residential portfolio, as the rental market has shown remarkable resilience to the Brexit worries and is still as strong as ever. In fact, the private rental sector is forecast to grow to over 5 million properties by 2018, a figure close to triple the number of privately rented properties across the whole of the UK back in 2000. As the market matures, with more people looking to delay purchasing their first home until their late 30s, along with other significant changes in employment mobility, family relationships and lifestyle, the private rented sector still looks like a strong performer when it comes to long term investment opportunities.
If you are thinking of getting into the buy to let property rental market as a new investor and don't know where to start, or you would like some impartial advice and guidance to get the best return on your investment, call me now on 01908 373580 or pop along and speak to me in person at our new offices in Central Bletchley, Milton Keynes.
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