Immediately following Brexit, there was no shortage of uncertainty in the housing market, but new research has found that the number of buy-to-let investments, remortgages and first-time house purchases grew significantly in July and August 2016.
A MortgageSolutions.co.uk article from September 2016 cites research by Connells Survey and Valuation, revealing that buy-to-let activity rose by 12.7% in August and valuations for first homes increased by 6.7% in July. Remortgaging also saw an increase of 4.2% in August 2016.
The buy-to-let market has been hit by increased costs this year. The stamp duty on buy to let homes has increased by 3% and changes in the tax rules mean that landlords will receive less tax relief on buy-to-let property income. Landlords have had time to consider these changes, and the research shows that many landlords have not been put off investing in the buy-to-let market.
Jon Bagshaw, the corporate services director of Connells Survey and Valuation, commenting on the buoyancy of the buy-to-let market, said:
“The market’s fears over the impact of Brexit are calming and the Bank of England’s decision to cut the Base Rate last month for the first time in seven years may also have a psychological impact on property investors.”
Bagshaw went on to call first-time buyers “the engine of the property market.”
There are many attractive mortgage offers available at low interest rates that appeal to buyers wanting to purchase their first home, or look for the very best in residential or commercial mortgage deals.