Buy-to-let valuations slide in April
Latest data released by Landmark Quest suggests that there was a 40% fall in the number of buy-to-let mortgage valuations during April, in comparison to February.
Between March and April alone, numbers slipped by a substantial figure of 30.6%.
Instructions
Landmark Quest’s technology enables instructions to be handled between lenders and valuation surveyors. In turn, the firm is able to study instruction volumes across the majority of the mortgage market.
Peter Stimson, Managing Director of Landmark Quest, noted, ‘overall market instructions were down slightly by 6.6% compared to March, however we saw a sharp decrease in the number of buy-to-let instructions-over 30%, in the same period. It’s clear that the race was on for transactions to go through before the new rules came into force on 1st April. It will be interesting to see what happens in May but I am anticipating that volumes will remain low.’[1]
Buy-to-let valuations slide in April
Fraud
Included in its screening services, Landmark Quest looks at the market for fraudulent threats. Following the recent Stamp Duty surcharge increase, the firm has reported a sharp rise in the number of investment properties listed under ‘property club’ and ‘sale under value’ websites.
There has been a number of new build properties appearing online offering buyer incentives.
Mr Stimson continued by saying, ‘with any significant changes like we have seen with the stamp duty rules, we do typically see a change in behaviours. Currently, we are seeing a sharp rise in the number of new-build developments either offering stamp duty paid deals or appearing in Property Clubs offered at discounted rates.’[1]
Concluding, Stimson noted that, ‘particularly worrying is that rather than just one or two properties at the end of development phase in some instances we are now seeing entire developments appearing for sale under value. Lenders and surveyors really need to do their due diligence and be fully aware of such incentives and schemes to manage and control the risks associated with these.’[1]
[1] http://www.propertyreporter.co.uk/landlords/btl-valuations-slump-40-in-wake-of-stamp-duty-changes.html