There was a significant slump in buy-to-let mortgage sales in March despite an expected last minute rush to beat the 1 April stamp duty deadline. According to Equifax Touchstone, buy-to-let mortgage sales fell 26.2% (-£1.04 billion) on February. Residential sales rose 1.4% on the previous month to £12.95 billion, the highest monthly sales figures since […]
There was a significant slump in buy-to-let mortgage sales in March despite an expected last minute rush to beat the 1 April stamp duty deadline.
According to Equifax Touchstone, buy-to-let mortgage sales fell 26.2% (-£1.04 billion) on February.
Residential sales rose 1.4% on the previous month to £12.95 billion, the highest monthly sales figures since the financial crisis.
Overall residential and buy-to-let sales for the intermediated market fell 5.1% (-£855.7 million) compared to February.
Scotland was the only region to increase its mortgage sales in March while Northern Ireland saw the biggest fall, down by almost 20%. London followed, with a drop of almost 10% in mortgage sales on February.
The data from Equifax Touchstone shows that the average value of a residential mortgage in March was £190,091 (2015: £179,187), and £157,819 for buy-to-let (2015: £151,753).
Iain Hill, relationship manager at Equifax Touchstone, said: “Recent buy-to-let mortgage flows indicate that borrowers took the advice of their lenders, and initiated transactions in good time to avoid an eleventh-hour panic.
“The big question from here is, to what extent will the new stamp duty rates discourage investors from entering into new deals? With so much economic uncertainty, property remains an attractive investment option for many people. Given the rollercoaster first quarter of 2016, it will be interesting to see where sales trends go from here.”
