New data from specialist mortgage firm Commercial Trust suggests that London’s buy to let sector turned a corner in the first quarter of 2019.
The broker says that the number of submitted purchase mortgage applications for the capital, in the calendar year to the start of April, rose by four per cent compared to the same period three months earlier.
The first quarter of this year also saw London regain its position as the leading region for buy to let business applications, with 15.8 per cent, closely followed by the South East on 14.5 per cent.
In the final quarter of 2018 the South East had overtaken London for the first time
The East of England and the North West also enjoyed an increase in the proportion of buy to let applications submitted during Q1, with each accounting for 12.5 per cent of this type of business.
The same two regions shared top billing for buy to let completions over the quarter.
“The effects of Brexit have been keenly felt in London and perhaps the stalling of house price growth has to some extent created a buyers’ market for buy to let. Our latest figures underline the importance of London and the South East within the buy to let market” claims Andrew Turner, chief executive at Commercial Trust.
“For the first quarter of 2019, these two regions contributed over 30 per cent of our buy to let purchase applications, an increase from the 26 per cent recorded in Q4 of 2018” Turner adds.
“Whilst it is good news to see increased activity in London, movement is not restricted to that area and both the North West and East Anglia have also increased their proportion of overall purchase business during the quarter.
“With Brexit now pushed back to later in the year, the combination of low interest rates, a wide variety of mortgage product choice, stalling house prices and soaring tenant demand, many investors are of a mind to invest in the private rental sector” he concludes.