According to the report, the North West has closed the gap notably and with a 11.11% share in Q2 in 2018, is within striking distance of taking the lead, for the first time.
Gains made by regions beyond London and the South East, tie-in well with a recent report compiled by housing economist, Martin Ellis, on behalf of The Mortgage Lender, which anticipates investors will increasingly look to purchase cheaper and higher yielding properties.
Recent analysis from UK Finance, suggested that in April and May of 2018, there was a year on year decline in the volume of buy to let house purchase mortgages, with 5.7% fewer applications in April and 9.8% less in May.
Whilst we await UK Finance’s statistics for June 2018, Commercial Trust figures for the first two quarters of 2018, appear to buck the trend:
In Q1 of 2018, Commercial Trust saw a 7.14% increase in the volume of buy to let house purchase mortgages, compared to the first quarter of 2017.
Q2 of this year, produced even more significant growth, with a 32.17% spike in volume, from the corresponding quarter of last year.
Andrew Turner, chief executive at Commercial Trust Limited, said: “We are delighted to have seen an overall increase in the volume of buy to let mortgage purchase applications amongst our client base in the first two quarters of 2018.
There is a growing role for specialist brokers in an increasingly complex buy to let market. The bewildering choice of products continues to grow, and the 2017 rule changes around buy to let add significantly to the intricacy of matching borrower to mortgage.”
London statistics for Q2, 2018
Statistics from Commercial Trust also showed that London delivered the stand-out performance for buy to let mortgage completions during Quarter 2, with an 8.97% quarter on quarter increase, followed by Scotland at 5.80%.
This is the first quarter in which London has had the biggest share in the broker’s completions (15.79%), since Q3 of 2017.
Andrew adds: “These figures make for encouraging reading. The London market has slowed of late, I hope our findings may reflect a sign of recovery in investment in the city.
Whilst property prices and stamp duty costs have undoubtedly quelled the investment ambitions of some landlords in the capital, there are those still willing to put their faith and money into London bricks and mortar.
If you are a landlord looking to invest in the capital, or elsewhere, we would be very happy to discuss your aims and help to steer you on the path to rental property success.”
