x
By using this website, you agree to our use of cookies to enhance your experience.

TODAY'S OTHER NEWS

Property transactions set to rise, ‘particularly in buy-to-let’ market

There has been a sharp rise in mortgage approvals, as reported by the Bank of England yesterday. 

The latest data reveals that lenders provided 66,281 home-loan agreements last month, up from 39,902 in June, but there could yet be further room for growth, especially in the buy-to-let market, thanks in part to the current stamp duty holiday, according to John Goodall, CEO at Landbay.

Rishi Sunak has attempted to boost the housing market and boost confidence by introducing the stamp duty holiday. 

Advertisement

The tax cut means movers and investors could save up to £15,000 until March 2021. 

Goodall said: “This trajectory of increasing house purchases is what we would have expected as lockdown rules continue to be relaxed. The stamp duty holiday has clearly given the boost needed to encourage people to buy again although there is inevitably an amount of caution both from a health and a financial point of view.

“While we are yet to see the effect the end of the furlough scheme will have on residential purchases, I expect the number of transactions to continue to recover for the rest of this year and the first quarter of 2021, particularly in buy-to-let, as the demand for rental property continues to increase.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • Mark Wilson

    I don't see the attraction of becoming a new BTL speculator. An increasing lack of security of income and an in creased lack of liquidity, sounds like a mugs game?

    Mark Wilson

    Paul, you see it your way and i see it mine, but renting a property is not a business.

    It sure sounds like gambling to me to enter the market today as there are so many unknowns and even more unknown unknowns.

     
    icon

    5 weeks deposit on day 1, step in the front door, no rent for 6 months, another 6 months while the notice is being served... and then the liberty of the courts to further consider ?..

    I don't believe it's a gamble at all.

     
  • icon
    • 02 September 2020 09:48 AM

    How many times do you need to be told investing in property for letting is NOT speculation.

    However like any investor in any business it is a considered gamble.

    I consider you are correct as far as it being worthwhile.
    If you can't easily evict rent defaulting tenants then it is no business.


    icon

    OKay, call me stewpid but, what's the difference between a gamble and speculation ?

     
  • icon
    • 02 September 2020 16:31 PM

    All business is a gamble.
    DOESN'T make it speculation.

    Business is a considered judgement that investing in that business will make money however achieved.

    Speculation usually involves not much time and effort.
    Investing in stocks and shares is a classic case of speculation.
    No effort is required.
    BTL property involves effort and responsibility..

    Shares DON'T!

    icon

    It depends how many shares you own in a company. If you own more than 50% then you own the company if you have the top class shares.

     
  • icon

    Buy to let landlords aren't really recognised as businesses by HMRC. They're seen more as housing charities that they can tax unfairly and rip off over and over again. We're taxed on turnover not profit like other businesses.. That's criminal!!! No way would I recommend someone coming into this game these days. I've had enough of being played for a mug and will be selling the portfolio. Someone else can take on the responsibility of housing these people..

  • icon
    • 04 September 2020 10:21 AM

    I sincerely hope there are some mug newbie LL out there that I can flog my properties to.

    We need these mugs so we can can get out or reduce our exposure to rent defaulting tenants.

    At some point BTL lenders are going to wise up and realise that they are lending to those who could be bankrupted by one rent defaulting tenant.
    Then the lender has all the hassle of repossession if the LL can't sell.

    Lenders are looking for long term stable business.
    If LL cannot repossess quickly then the business model collapses.

    I hope to be out of the game long before BTL lenders wise up.

icon

Please login to comment

MovePal MovePal MovePal
sign up