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Huge jump in buy-to-let activity as first-timers fall back
There has been a major acceleration in property valuations for buy-to-let landlords, while first-time buyer activity has retreated.
Connells Survey & Valuation conducted 33% more buy-to-let valuations in May than a year ago, but valuations for first-time buyers fell 4%.
On a monthly basis, May’s buy-to-let valuations were up 3% on April, while valuations for first-time buyers fell 2%.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Britain’s buy-to-let market is booming right now as would-be landlords are eager to enter the sector and current landlords look to expand.
“However, for first-time buyers, May was not just less positive than the rest of the housing market, but also disappointing in comparison to the previous month. Previously, valuations for new buyers had proved resilient in April, even when uncertainty about the impact of the election result on home-buyers was at fever pitch.
“The picture painted here is a consistent one. Fewer people looking to buy their first home means more tenants sticking to the rental sector. As such, new landlords enter the market and those already in the sector grow their business to capitalise on the increased demand.
“Yet what remains unclear is how long this contrast in fortunes will continue.”
Connells’ valuations for home movers were up 8% on the year and 4% on a monthly basis.
http://www.propertyindustryeye.com/huge-jump-in-buy-to-let-activity-as-first-timers-fall-back/
