A report from the Norwich-based buy-to-let mortgage broker, shows that the proportion of new buy-to-let purchase applications in the North has grown significantly year-on-year, for the first three quarters of 2017.
Leading the way is the North East, which has seen growth of 77.6% in its share of overall purchase applications.
Hot on the heels is Yorkshire and the Humber which up to the end of Q3 had seen growth of 73.2% compared to the same period of 2016.
The North West came third, with year-on-year growth of 24.8%, followed by the South East, which increased its share by 17.3%.
Overall, London continues to attract the most purchase applications for buy-to-let mortgages, but its influence has waned, with a percentage fall of 25.4% on its overall share of business in the first three quarters of 2017, compared to the same period of last year.
Andrew Turner, chief executive at Commercial Trust Limited, said: “There has been a resurgence in buy-to-let activity in the North of England, with the North East, Yorkshire and the Humber and the North West all showing healthy growth in buy-to-let activity.
With property prices typically cheaper – and a strong demand for private rental homes from a workforce in regenerated cities and from thriving student populations, there is plenty of incentive for those looking to invest in property, to look North. The latest Your Move Index confirmed that the North East and the North West deliver the best yields for buy-to-let landlords in England and Wales, so it is little surprise to see shrewd investors taking advantage of low mortgage rates, high rental demand and cheaper property prices.
However, our latest data also shows that London and the South East continue to play an enormous role in purchase applications nationally, but that as two distinct regions, we have seen the South East close the gap on the Capital during the first three quarters of 2017. This may well be in part down to the impact of the 3% stamp duty surcharge on second homes, which came into effect in April 2016. With property prices typically more expensive in London, the stamp duty levy is often significantly more, so perhaps landlords are casting their net further afield.
This also follows recent news that tenants in London are looking to move a little further out, preferring to pay less rent and commute into the City. That said, the volume of business in London and the South East remains robust and demand dictates that this remains a buoyant market for both regions.”
