One in three Britons say they are more likely to invest in property than stocks and shares, according to a recent study by the Independent.
The research confirms what the property industry has thought for a long time – buy-to-let is a profitable, reliable form of investment.
Halifax has recently reported that over the past three months, house prices have dropped by an average of 0.2% – the first time values have fallen since 2012.
The Lettings Director of Romans estate agent, Michael Cook, comments: “The decline in property prices is small and is unlikely to have a significant impact on the housing market. Mortgage rates are lower than ever and with less homes available to buyers, demand for property remains high.”
During the same period of 2016, the market experienced a surge of activity from buy-to-let investors keen to beat the Stamp Duty surcharge.
When taking this rush into account, it becomes clear that the slight drop in house prices is unlikely to continue going forward.
In addition to the Stamp Duty changes, the Government has also imposed a number of other changes to the buy-to-let sector – such as the reduction in mortgage interest tax relief – designed to help make the market more fair for first time buyers.
While there has continued to be an increase in transactions in the buy-to-let market, many aspiring homeowners are still struggling to get onto the property ladder.
Cook says: “With buyers struggling to raise the cash required to fund a house purchase, landlords are able to cash in on the ever-growing rental market and answer the demand for rental property.
“Our own internal data for Q1 [the first quarter] of 2017 shows transactions to buy-to-let investors are at the highest level since the drive to beat the Stamp Duty surcharge last year, meaning the confidence in the UK housing market shows no signs of slowing.”
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