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London Buy-to-Let Market Continues to Attract Property Investors

According to Commercial Trust’s most recent buy-to-let purchase mortgage data, London is continuing to be seen as an attractive area for new property investors.

The specialist buy-to-let broker has analysed purchase applications from across the UK. It has revealed that London has achieved the greatest share over other regions, at 15.34% during the second quarter of 2018. This is the first time it has done so since Q2 of 2017.

The report details that the North West has also seen positive results, having closed the gap with an 11.11% share during Q2 this year. For the first time, it appears possible that the North West is in a position to take the lead.

Andrew Turner, chief executive at Commercial Trust Limited, said: “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 products continues to grow, and the 2017 rule changes around buy to let add significantly to the intricacy of matching borrower to mortgage.”

Statistics from Commercial Trust also show that London has prospered for completions of buy-to-let mortgages during Q2, having seen an 8.97% quarter on quarter increase. This is followed by Scotland at 5.80%.

The result from this quarter is the first time that London has achieved the biggest share in broker’s completions since Q3 of 2017.

Andrew Turner also commented: “These figures make for encouraging reading. The London market has slowed of late, I hope our findings may reflect a sign of recovery in investment in the city.

“Whilst property prices and Stamp Duty costs have undoubtedly quelled the investment ambitions of some landlords in the capital, there are those still willing to put their faith and money into London bricks and mortar.”

Em Morley:
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