Buy-to-let mortgage purchase approvals reached a 9-year high of 85,432 in January as landlords clamoured to get deals done before the 3% stamp duty surcharge comes into force in April.
Buy-to-let mortgage purchase approvals reached a 9-year high of 85,432 in January as landlords clamoured to get deals done before the 3% stamp duty surcharge comes into force in April.
The e.surv mortgage monitor put January approvals 20.6% higher than December when there were 70,837 purchases and 39.3% higher than January 2015 when there were 61,341.
Richard Sexton, director of e.surv chartered surveyors, said: “Buy-to-let approvals contributed to the growth in January home lending. Concerns about the sector’s growth have sparked a wave of legislation but as stamp duty changes come into effect this April, there’s been a rush to get buy-to-let loans approved. Many have predicted a narrowing of the buy-to-let sector but actually what we’re seeing in lending quarters appears to be the opposite.
“This buy-to-let rise also hasn’t been at the expense of first-time buyers. The number of small-deposit loans granted has risen in January, and this is a great sign that lenders still have the appetite to give first-timers a chance. Rising wages and a delayed interest rate rise have also boosted first-timer’s prospects.
“For those investing in a second property it’s also a race to beat April’s legislation – adding an extra boost to overall house purchase approval levels.”
