Buy-to-let landlords are holding off their purchases and home-movers are reluctant … to move.
Instead, it appears that both types of property owner are preferring to remortgage.
Drawing on its own data, Connells Survey & Valuation said that remortgage valuations were almost 5% up on a monthly basis in November, and up almost 25% on the same month last year.
The number of buy-to-let valuations fell 6% on a monthly basis and almost 19% when measured annually.
Demand for valuations from home-movers was down nearly 1% on a monthly basis; however, first-time buyer valuations were up nearly 2% monthly and 13% on an annual basis.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “There’s no doubt that remortgaging is driving the mortgage market at the moment.
“This year has been something of an annus horribilis for landlords.
“They have had to contend with the reverberations of the 3% Stamp Duty surcharge and the removal of the 10% ‘wear and tear’ allowance.
“Fortunately, June through to October were all relatively good months for BTL remortgages with activity rising on a seasonally adjusted basis.
“The sector was beginning to find its footing again.
“However, Philip Hammond’s latest proposals regarding lettings fees appear to have unsettled the market again.”
Comments (3)
Connells fees to tenants –
Fee
£ Inc. VAT
Explanation
Referencing
£120.00 / Person
This is charged for each tenant applying for the tenancy.
Guarantor Referencing
£120.00 / Guarantor
Only if a Guarantor is required and charged for each guarantor that is referenced.
Company Referencing
£300.00
Company or Business reference fee
Tenancy Agreement
£210.00
One off charge for the Tenancy Agreement preparation.
Unfurnished Inventory Check (Tenants Share)
£120.00
One off charge per tenancy.
Furnished Inventory Check (Tenants Share)
£144.00
One off charge per tenancy.
Renewal/Extension agreements
£114.00
One off charge for each renewal/extension.
Enough said!
The way this Government is acting is best described without the word “horribilis”
The extra 3% SDLT and the removal of the wear and tear pale into insignificance against S24, yet this act of craziness by our former Chancellor doesn’t get a mention. Odd!
I’d like to suggest a new tax though… costs for expenses should be completely disallowed for one ‘profession’ and tax should be increased to 75%. The ‘profession’ I refer to is after dinner speakers.