New figures from the Council of Mortgage Lenders have revealed that landlords took out 45,000 mortgage loans before the introduction of the new stamp duty increase in April.
The number of loans in March rose by 142%, with buy-to-let loans up a whopping 88%. The increase in the number of buy-to-let loans was up over 160% from the same time in the previous year. The increase in the number in buy-to-let mortgages came as potential home owners attempted to purchase homes prior to the 3% surcharge on buy-to-let properties which came into effect on April 1st this year. As a result of the change, typical bills on buy-to-let properties were expected to triple, however, as seen from the latest figures, a number of people attempted to get in on the market before such a rise.
While there was a significant increase in the number of buy-to-let properties purchased across the country the South East and London in particular had the largest increase. According to some experts, this was due to the fact that demand for rented properties in such areas was the main factor for an increase. Statistics from the Office for National Statistics showed that prices in such areas rose by around £30,000 between February and March, with many investors keen to finalise purchases before the deadline.
Some stated that the property market would suffer following the hike in stamp duty due to the fact that many investors and those interested in buying properties would no longer wish to be involved. However, data has shown that despite the stamp duty increase, the promising state of the housing market and the overall value in owning a property is still encouraging more investment.
Figures demonstrated that in the first three months of the year, landlords borrowed a total of £14.6 billion in the period, up 36% in comparison to the previous quarter. This represented a significant 92% increase year-on-year. Property values in March increased in the UK by around 9%.
Although some have predicted that there will be a natural decline in the number of properties purchased in the next month and that prices may become lower for a short period, the latest figures do not suggest that this will be the case, with the overall trend being exceptionally promising.
According to the most recent data on the state of property in the UK, the value of properties is significantly higher than during the 2008 financial crisis. London properties, perhaps unsurprisingly, have seen the sharpest level of improvement with the overall value of properties now being 60% higher than what they were prior to the crash. While this is expected, property prices elsewhere in the UK are 23% higher than what they were at their peak prior to the financial crash.
If you are interested in buying a property or if you have any questions about obtaining a buy to let mortgage, contact our team of expert solicitors today using our online contact form.
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