Buy-to-let sees January surge

Sarah Davidson

February 11, 2015

In contrast January activity fell by 4% from December overall, while remortgage activity plummeted by a quarter (25%).

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “The buy-to-let sector has bounced back after a disappointing performance in December when it had seen one of the biggest monthly falls.

“It now looks to have regained that lost ground as landlords – now spoilt for choice with a record number of mortgage products to choose from – begin to invest more.

“Low mortgage rates have also continued, posing even more attractive deals for potential landlords or those expanding portfolios.”

In terms of other sectors first-time buyer activity increased by 3% month-on-month, although it was 28% lower than January last year.

Remortgaging activity was also 28% lower than January 2014.

Bagshaw added: “The expected post-holiday pick-up in activity failed to materialise with the market making a very restrained start to the year.

“Mediocre comparisons are due in part to the exceptional performance seen in January 2014 as a result of a healthy pipeline at the end of Q3 2013.

“In contrast, the transaction market slowed dramatically towards the end of last year.

“However, this slow start is not a cause for alarm as January is typically a slower month with lower volumes of activity.”

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