APRIL 16, 2018 | BY A & S Property
Landlord remortgaging activity for home improvements hits record high
The number of landlords remortgaging in order to raise funds to improve their properties has reached an all-time high, new figures show.
In the last 12 months, 9,523 landlords who re-mortgaged their buy-to-let withdrew money for home improvements – over three times more than the 2,967 recorded in 2016, according to Countrywide.
In the last 12 months, 5.6% of landlords who remortgaged released cash to spend on their property, up from 1.9% in 2016.
Landlords remortgaging to raise money for home improvements
Source: Countrywide & UK Finance
The greatest increase was in the East of England where, in the last 12 months, 10.4% of landlords who remortgaged released money to spend on home improvements, up 6.8% in the last two years.
Every region across the UK has seen a rise, but regions in the South have seen the biggest growth in landlords releasing cash.
In London, 7.4% of landlords remortgaging released money for home improvements, up 4.4% in the last two years.
Proportion of landlords remortgaging for home improvements by region
Landlords in London took out the most money to spend on buy-to-let improvements, £35,470 on average. This is more than three times the £11,150 an average landlord in Yorkshire & the Humber withdrew.
Across Great Britain as a whole, the average landlord re-mortgaging to make improvements took out £22,850.
Average amount withdrawn by a remortgaging landlord for home improvements
The average cost of a new let reached £951 per calendar month (pcm) in Great Britain last month, up 1.7% up on the corresponding period last year.
The Midlands saw the fastest rental growth, up 2.8% year-on-year, followed by Wales at +2.1% and Greater London, also at +2.1%.
Average rents in Scotland fell for the second month in a row, but the rate of decline slowed in March.
New Lets (pcm)
Johnny Morris, research director at Countrywide, said: “A record number of landlords are re-mortgaging to release money to spend on their properties instead of trading up. The additional transaction costs incurred from the stamp duty changes for second-homeowners means more landlords are choosing to invest in their properties, refurbishing and improving them and holding on to them for longer to maximise gains.
“Average rents grew in seven out of eight regions across Great Britain, with Scotland being the only region to see falls. Rental growth during the first quarter of this year stands at 2.1%, 0.5% faster than the same period in 2017, as low stock levels continue to drive growth.”
Article courtesy of Landlord Today | Sign up for Landlord Today newsletter | Get this news on YOUR site!