A growing number of buy-to-let landlords are looking to take advantage of lower borrowing costs, increased rental demand and the stamp duty holiday by expanding and diversifying their property portfolios.
Mortgage approvals rose sharply in August, reaching their highest monthly level for almost 13 years. Strong buyer demand, a desire for more space and increased interest in properties outside Britain’s major urban centres all contributed to the rise in activity.
According to the latest data from the Bank of England, mortgage approvals increased from 66,300 in July to 84,700 in August, their highest level since October 2007. Ultra-low borrowing rates and the government’s temporary stamp duty holiday also helped to stimulate demand.
Property buyers across all price brackets were increasingly looking to secure larger deposits in order to benefit from the available stamp duty savings. While some lenders remained cautious, favourable borrowing conditions continued to support strong levels of market activity.
Hugh Wade-Jones, Managing Director of Enness Global Mortgages, commented that buyers and investors were continuing to take advantage of the favourable lending environment while conditions remained attractive.
