Market share for buy-to-let applications in London rose for the first time since Q2 of 2017, growing from 12.4% in Q4 of 2017 to 16.5% in the first quarter this year, Commercial Trust has found.
Market share for buy-to-let applications in London rose for the first time since Q2 of 2017, growing from 12.4% in Q4 of 2017 to 16.5% in the first quarter this year, Commercial Trust has found.
Overall, the South East still leads the way, having also grown its market share from 17.2% in Q4 of 2017, to 19.2% in Q1 of 2018. This means that London has also closed the gap on the South East’s overall market share.
Andrew Turner, chief executive at Commercial Trust, said: “From our latestquarterly data, it is clear that property investment in London and the South East is very much alive and kicking – and if anything, growing.
“The report perhaps also reflects the effect of the introduction of the 3% stamp duty surcharge in April 2016, which of course would have been more keenly felt by investors in the more expensive properties found in this part of the country.
“London and the South East remain regions of high demand for rental property and a recent article from City AM indicated that property prices in the capital have continued to fall, perhaps creating something of a buyers’ market for investors.
“I think the data also reflects a regained sense of confidence in London and the South East, among landlords with capital to spend.”
The biggest increase in market share, quarter on quarter, was recorded by the East Midlands, which saw a 5% increase in the first three months of 2018.
Scotland and Wales also saw an upsurge in market share over the same period by almost 2%.
Overall, London and the South East still make up a significant proportion of the buy-to-let application market share, although the North West has grown since 2016.
Turner added: “Similarly, the North West continues to see significant infrastructure investment and projects like HS2 will have the potential to further enhance opportunities for economic development in the long term.
“This in turn may attract more businesses, creating jobs, migration and further rental demand, whilst at the same time potentially contributing to property price growth.”
