Although a recent survey has indicated that housing supply increased during January 2016, it still hasn’t been sufficient to meet the demand from buy-to-let investors.
According to a new survey from the Royal Institution of Chartered Surveyors (RICS), the number of house sales increased during January. However, the survey also indicated a rise in the number of buyer enquiries during that month.
The survey also revealed that interest from buy-to-let investors had also increased rapidly. Almost three quarters of survey respondents believe that the demand from buy-to-let investors will rise sharply before 1st April, in a bid to avoid the stamp duty increases set to be introduced for owners of second homes and landlords.
Surveyors had indicated that property prices had risen again during January, possibly sparked by the demand from buy-to-let. The chief economist for RICS, Simon Rubinsohn, said that despite increased supply, the property situation is intensifying.
In January 2016, there were more approvals for mortgages than at any time since October 2007. According to the director of Esurv, Richard Sexton, many expected to see a reduction in buy-to-let, but the opposite is now true, as investors rush to secure mortgages before the stamp duty and tax relief changes are introduced in April 2016.
When mortgage advisers take their CeMAP training in Leeds and other cities, they are fully prepared to deal with this kind of situation, where demand outstrips supply and prices inflate. A mortgage adviser may be able to offer advice to anyone struggling to find a mortgage deal.
