The number of landlords purchasing properties using mortgages continued to drop in March 2019, according to the latest Mortgages Trend report from UK Finance.
During March this year, only 5,000 buy-to-let property mortgages were completed by landlords and property investors; a 9.1% drop from the same period in 2018.
On the other hand, 14,400 remortgages for buy-to-let properties were recorded in the same month; a rise of 3.9% on the same period from last year.
There’s no doubt that tax and a wealth of regulatory changes impacting the buy-to-let sector are the largest factors contributing to the drop in new buy-to-let purchases. Despite this, remortgaging has actually increased year-on-year in the sector for a second consecutive month.
On the flip of the coin for first time buyer mortgages, 28,800 were completed in March for the first time – down by 2.4% on the same month of 2018. This is the first annual decline in first time buyers since September last year.
With first time buyer mortgages down, the movement from buying homes to renting only continues to grow in strength.
With the number of buy-to-let property mortgages down as well, this shows that the number of new landlords or landlords looking to expand their property portfolios has decreased also. For you as a landlord or investor, this has plenty of benefit.
First of all, the continued move from first time buying to renting means that demand for rental property stock is ever present. By having that demand in place, the likelihood of void periods minimises, meaning you are in a position to start returns of your property investment almost immediately, especially if you pick up a great investment from the market.
Secondly, with less landlords and property investors seeking out new stock, it means there is less competition for you. This gives you a far better range of property stock to pick from, whilst also increases your chances of being able to secure a better deal. Less demand for purchasing the buy-to-let properties gives you more room for negotiation when it comes to the final deal.
If you’re currently looking for new rental properties and would like a free, second opinion; or advice on where to invest and how to competitively price your rental figure, give me a call on 0161 883 2525 or drop me an email on firstname.lastname@example.org.