Buy-to-let sales slow over summer

There was a significant drop in the number of buy-to-let property sales in July in the wake of the UK’s vote to leave the EU, according to Equifax Touchstone. 

Buy-to-let mortgage sales fell by 15.2% in July compared with the previous month, while year-on-year sales nosedived by 39.1%.

This compares with an overall fall in mortgage sales of 15.7%, while year-on-year sales are down by 16.6%.

The average value for buy-to-let mortgages also dropped year-on-year, from £160,203 to £157,195.

Every regional of the UK saw a decline, led by Northern Ireland and Scotland.

Iain Hill, relationship manager at Equifax Touchstone, said: “Following Brexit, the UK housing market has been on tenterhooks, waiting to see how hard property buyers’ confidence has been hit. It’s important to remember that the summer period traditionally brings a dip in mortgage sale volumes during July and August, so it will be many months before the full effect of Brexit is uncovered.

“We’re confident that the market will bounce-back longer-term, with negativity likely to be offset by the recent interest rate cut, leading to lower and more competitive rates from lenders.”

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