Northern England starts to have greater influence over the BTL market
The proportion of new buy-to-let purchase application in Northern England has grown year-on-year for Q3 2017 according to a fresh report from Commercial Trust Limited.
The data from the Norwich based mortgage broker demonstrates how the Northern regions of England are beginning to have a greater influence on the market. The North East in particular is leading the way seeing growth of 77.6% in overall purchase applications.
Yorkshire and the Humber followed close behind in second place with growth of 73.2% up to the end of the Q3 compared to the same period last year.
The North West is in third place, with a year-on-year growth of 24.8%. The South East was fouth seeing a growth rise of 17.3%.
Commenting on the findings, Andrew Turner, chief executive at Commercial Trust Limited, said that Northern areas are showing signs of a healthy growth in buy-to-let activity, suggesting a resurgence in these markets.
“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.”
Looking towards the capital the number of purchase applications in London remains high, though influence has dwindled. Its overall share of business in Q3 2017 has dropped 25.4% compared to the same period in 2016.
Turner has however said that London and the South East continue to pave the way in purchase applications on a national scale with the South East closing the gap on the capital during Q3 2017.
“This may be in part down to the impact of the 3% stamp duty surcharge on second homes,” Turner said. “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.”
He added: “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.”
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