Taylor Scott International News
The UK’s buy to let sector has seen a surge of activity as property investors have rushed to complete their transactions before the new Stamp Duty surcharge comes into force next month. In February the number of buy to let valuations carried out increased by 34% compared to the same month last year. Meanwhile, remortgaging activity, which includes buy to let remortgaging activity, was up 41% over the same period. In addition, buy to let activity saw a month on month increase of 25%, while remortgaging volumes climbed 6% in February compared to the previous month, largely driven by buy to let remortgaging, according to the data from Connells Survey & Valuation. It confirms a lot of anecdotal evidence that the extra 3% Stamp Duty surcharge on second homes or buy to let properties due to take effect on sales completed after 01 April 2016 has resulted in increased demand from buy to let investors. ‘Buy to let investors and those remortgaging with the aim of buying a second home are racing against the clock. Activity from both these groups is picking up pace on a monthly basis as the April Stamp Duty deadline looms and people hurry to complete their transactions before being hit by the 3% surcharge on their buy to let property or second home,’ said John Bagshaw, corporate services director of Connells Survey & Valuation. ‘Expect this activity to reach a crescendo in March before calming in the second quarter of the year. Buy to let investors will be calculating the impact the Stamp Duty hike is having on their rental yields, while those thinking of remortgaging to fund a second home will weigh up whether it’s still financially viable for them to do so,’ he explained. ‘But behind these somewhat frantic figures there is an underlying story of steady, long term growth. Despite taking some political heat recently, the buy to let market continues to attract investment off the back of its potential returns, while the remortgaging sector remains popular with those looking to get a better mortgage or release capital on their home for investment purposes,’ he added. In addition, the home mover and first time buyer sectors have experienced strong monthly rises in valuation activity. The number of valuations carried out for first time buyers surged by 36% between January and February 2016, while those carried out for home movers grew by 35% over the same period. Activity for both these sectors was steadier on an annual basis. Those taking their first step onto the property ladder in February reported a 9% increase compared to January and home movers experienced an 8% uptick on the same month on month basis. ‘Home movers are confident the strong but steady property price rises which typified 2015 are set to continue, and so feel confident that their home’s value will hold them in good stead as they endeavor to move up the ladder,’ said Bagshaw. ‘Meanwhile, first time buyers, whose personal… Taylor Scott International
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