Commercial Trust has reported that during the second quarter of the year, London recorded the greatest share of buy-to-let investor activity over other regions (15.34%), for the first time since Q2 of 2017, overtaking the South East (13.76%).
These two regions have dominated the broker’s buy-to-let purchase data historically, but 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.
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.
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, 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.”
Statistics from Commercial Trust also showed that London delivered the stand-out performance for buy-to-let mortgage completions during Q2, 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.
Turner added: “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.”