The number of properties in the Northern regions of England being bought by buy to let landlords is increasing, up considerably in the first three quarters of 2017, new research suggests.
New buy to let purchase applications in the North East increased by 77.6% as a share of overall purchase applications, according to the data from mortgage broker Commercial Trust Limited.
The figures also show that in Yorkshire and the Humber applications were up 73.2% by the end of the third quarter compared to the same period in 2016 and up 24.8% in the North East.
The next biggest area of growth was the South East with an increase of 17.3% and overall while London continues to attract the most purchase applications for buy to let mortgages, numbers are 25.4% on its overall share of business.
‘There has been a resurgence in buy to let activity in the North of England, with the North East, Yorkshire and the Humber and the North West all showing healthy growth in buy to let activity,’ said Andrew Turner, chief executive at Commercial Trust Limited.
‘With property prices typically cheaper and a strong demand for private rental homes from a workforce in regenerated cities and from thriving student populations, there is plenty of incentive for those looking to invest in property, to look North,’ he explained.
He pointed out that the most up to date Your Move Index confirmed that the North East and the North West deliver the best yields for buy to let landlords in England and Wales, so it is little surprise to see shrewd investors taking advantage of low mortgage rates, high rental demand and cheaper property prices.
‘However, our latest data also shows that London and the South East continue to play an enormous role in purchase applications nationally, but that as two distinct regions, we have seen the South East close the gap on the capital during the first three quarters of 2017,’ said Turner.
He explained that this may well be in part down to the impact of the 3% stamp duty surcharge on additional homes which came into effect in April 2016. ‘With property prices typically more expensive in London, the stamp duty levy is often significantly more, so perhaps landlords are casting their net further afield.