Investors and Landlords are relying more and more on mortgages for buy to lets, with the number of cash purchases falling.
The Stamp Duty Holiday deadline, coming up at the end of March 2021, has helped to fuel this with cash purchases falling to an all-time low.
In 2020 cash purchases by landlords fell to 52% from a high of 62% a few years earlier.
In part, this is due to new and small landlords taking advantage of the stamp duty holiday who rely more on mortgage finance.
This has also fuelled a delay in application processing with Mortgage Brokers reporting that lenders are requiring much more information than before, and some will struggle now to complete before the deadline.
Cash purchases on buy to let properties remain highest in the North East, North West and Wales where average prices are typically lower.
Whilst some have benefited from the Stamp Duty Holiday it still remains to be seen whether it has actually helped or simply manipulated the market.
Property prices have risen over £14,000 on average since the stamp duty holiday was announced but the typical saving in tax is only £4,500.
If you have a large property or HMO you currently let or just planned to let, but with all the uncertainty in the market, you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
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