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The UK’s Buy to Let Sector Shines Even Brighter in August

Following on from a boost in July, activity in the buy-to-let market continued to thrive in August as those in the sector adjust to new housing policies and the post-Brexit shock dissipates, say new figures.

Following on from a boost in July, activity in the buy-to-let market continued to thrive in August as those in the sector adjust to new housing policies and the post-Brexit shock dissipates, say new figures.

A new report by Connells Group’s management panel, Connells Survey and Evaluation, has found a 12.7% surge in buy to let activity in August 2016. The figure serves as an indication that the market has not been hindered in the wake of the Referendum vote as many had expected.


A contributing factor for August’s surge in buy-to-let activity, aside from the Bank of England’s recent cut to interest rates, has been the market's successful adaptation to recent housing policies, claims the firm.


According to the estate agency, the August surge is attributable to the buy-to-let market accommodating the government’s tax relief restriction on mortgage finance costs, the removal of 10% “wear and tear” allowance, and the introduction of a 3% stamp duty surcharge.


Figures from the report also show a significant surge in first-time buyer interest in August, as property valuations from this group were found to have increased by 6.8% from July and 19.6% year-on-year.


The number of landlords remortgaging their properties has also seen a monthly and annual increase, as the number of property valuations increased 4.2% from July and by 1.5% year-on-year.


Others taking further steps on the property ladder and who are looking to sell their homes were also more active in August, with the proportion of this group surging by 2.6% from July.


Across other sectors of the housing market, property valuations have also risen considerably by 5.1% from July’s figure. Compared to August 2015, property valuations have increased by 0.2%.


With figures showing a resilient buy-to-let market powered by record-low interest rates and uncertainty and doubts of a market clash post-Brexit abating, attention now shifts towards the Bank of England’s next public announcement on Thursday the 4th of September which could see the outlook for interest rates changed.

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