Buy-to-let quarter Central Housing Group

Three more years of decline in buy-to-let quarter

The buy-to-let quarter is set to continue declining until 2021, says a new report, which also forecasts a further price correction in the London housing market.

The number of buy-to-let mortgage approvals for purchase dropped in 2016 by 13%, followed by a drop of 27% last year.

The new report, compiled by the Centre for Economics and Business Research for Shawbrook Bank, says there will be further falls as the buy-to-let quarter adjusts to a raft of tax changes and new regulation.

The bank says that government policies have had a marked effect.

It expects that the market will stabilise in 2021, which will be followed by returns to growth in the following two years.

Shawbrook expects that strong tenancy demand will continue, and that supply will be underpinned by professional landlords.

The report also says that London house prices could drop further.

It says: “London has long dominated the buy-to-let quarter.

“But a flat housing market and limited capacity for rental growth in the capital means that other places in the country offer better yields to investors, especially cities with large student populations.

“Brexit adds a further layer of uncertainty: with a number of City jobs at stake, London’s housing market might be in for a further price correction.”

Blog Post from Property Industry Eye

See details of our Guaranteed Rent Scheme here

If you have any comments, please email the author of this article and click on the link above

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors



Registered Office: Woodgate Studios, 2-8 Games Road, Cockfosters, Hertfordshire, EN4 9HN | Registered in England and Wales | Registered Company No. 3961047 | VAT Registration No. 752 6015 48

 

Social Media Auto Publish Powered By : XYZScripts.com
Google Rating
4.8
Based on 115 reviews
js_loader