London’s buy-to-let market attracts new investors
London continued to attract new property investors, as reflected by Commercial Trust’s latest buy-to-let purchase mortgage data.
Analysis of buy-to-let purchase applications across the UK reveals that the capital recorded the greatest share over other regions, at 15.34% during Q2 in 2018.
This is the first time that London’s buy-let market has attracted the biggest share in the broker’s completions since Q2 of 2017, overtaking the South East, at 13.76%.
The North West also saw a rise in activity levels, with an 11.11% share in activity, reflecting the fact that a growing number of buy-to-let investors are looking to purchase cheaper and higher yielding properties.
In Q1 of 2018, Commercial Trust saw a 7.14% increase in the volume of buy-to-let property purchase mortgages, compared to the first quarter of 2017.
Q2 of this year produced even more significant growth, with a 32.17% spike in volume, from the corresponding quarter of last year.
Andrew Turner, chief executive at Commercial Trust Limited, commented: “We are delighted to have seen an overall increase in the volume of buy to let mortgage purchase applications amongst our client base in the first two quarters of 2018.
“There is a growing role for specialist brokers in an increasingly complex buy to let market. The bewildering choice of productscontinues to grow, and the 2017 rule changes around buy to let add significantly to the intricacy of matching borrower to mortgage.”