Home Residential PropertyBuy-To-LetBuy-to-let rebounding quicker than residential market

Buy-to-let rebounding quicker than residential market

by LLP Reporter
19th Aug 20 2:28 pm

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 hadnโ€™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, โ€œIn terms of the volume of applications over this period, the buy-to-let market fell less steeply and recovered more quickly than residential.

โ€œWeโ€™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.

โ€œItโ€™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 itโ€™s not surprising to see landlords reviewing future plans for their property portfolios as tenantsโ€™ needs and priorities are also affected by the pandemic.

โ€œThe recent Government announcement on stamp duty appears to be spurring prospective purchasers into action, including buy-to-let landlords.

โ€œAs our survey reveals, investors are having to adapt quickly and reassess opportunities and the future shape of their portfolio.โ€

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