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TODAY'S OTHER NEWS

Buy to let investors target smaller cheaper properties

Data from the first three months of this year suggests that investors are increasingly purchasing smaller, cheaper properties.

Specialist lender Mortgages for Business says average loan amounts and security values fell among all property types with figures for ‘vanilla’ properties below any seen in the past year.

The quarter also saw the balance of the buy to let mortgage market shift away from remortgaging - a dominant force until recently - and strongly towards purchases.

The change was particularly strong among complex property types, which Mortgages for Business defines as Houses in Multiple Occupation, multi-unit freehold blocks and semi-commercial property. 

“These figures represent a departure from the established norms, which have been mostly defined by the remortgage market. This time, however, we see new and unusual purchase activity from landlords, presumably because changes to income tax relief have prompted them to re-examine their strategies” says David Whittaker, CEO of Mortgages for Business.

Purchases accounted for 41 per cent of mortgage transactions involving vanilla buy to lets - this is around three per cent above the long-term trend “which is likely evidence of an ongoing process of landlords selling their portfolios to newly created limited companies” says Whittaker. 

Mortgages for Business says that although incorporation has not been cost effective for all investors, transactions of this type can help to reduce the tax burden on the landlord, often eventually offsetting the initial expense. 

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    Anyone could have told Osborne that this would happen but he wouldn't have listened. It was all about tax grab and never mind anything else. But he was a master at deception! He sold all the changes to the public saying it would help FTBs and so forth. Generation Rent lapped it up but as predicted by many, it is them that are losing out. Meanwhile rents are going up and so are house prices.

    S l
    • S l
    • 27 March 2019 09:51 AM

    i talked to quite a few people and generally nobody have any clue and they dont keep up with the news on the additional laws pertaining to landlords and rental. All they can see is rent is too high and just look for cheaper rent. Nobody is bothered about what the politicians saying. moreover, the committee only have a handful of people coming forward to give evidence. not a true reflection of what the market need especially re 4 year long term tenancies

     
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    The stamp duty on second homes is too blunt a tool and encourages investors to buy properties that first time buyers would like.

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    • 07 November 2018 08:54 AM

    The quarter also saw the balance of the buy to let mortgage market shift away from remortgaging - a dominant force until recently - and strongly towards purchases.
    happy wheels online

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    the

  • Kathrene jones

    Hi

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