Buy-to-let is proving more robust than the residential mortgage market, according to research from Leeds Building Society.
The Society’s figures show that between March and mid-July the volume of buy-to-let mortgage applications held up better than residential.
Additionally, its survey found that landlords are looking for different types of property or searching in new locations as a result of Covid-19.
Of those surveyed, 79% of landlords who were considering acquiring a buy-to-let property before the pandemic said their plans had changed. Half still want to buy but are taking a fresh look at their plans.
29% are reconsidering the type of property they are looking to buy and 29% are looking at new locations, while an additional 20% are reassessing what they are willing to invest and 22% are rethinking their timings.
Half of the landlords surveyed by Leeds Building Society said they hadn’t been planning to buy any new properties before the lockdown and still had no plans to do so.
Matt Bartle, director of products at Leeds Building Society said, “In terms of the volume of applications over this period, the buy-to-let market fell less steeply and recovered more quickly than residential.
“We’ve also seen increased purchase activity; suggesting landlords are taking advantage of a combination of factors, including stamp duty relief, low interest rates and tenant demand.
“It’s interesting to see how well buy-to-let has been holding up in this period. Bearing in mind the changes that coronavirus has brought to all our lives it’s not surprising to see landlords reviewing future plans for their property portfolios as tenants’ needs and priorities are also affected by the pandemic.
“The recent Government announcement on stamp duty appears to be spurring prospective purchasers into action, including buy-to-let landlords.
“As our survey reveals, investors are having to adapt quickly and reassess opportunities and the future shape of their portfolio.”
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