According to data produced by the broker Mortgage Advice Bureau and search tool provider Twenty7Tec, purchasers of buy-to-let properties are starting to focus on lower value properties to pay less stamp duty and lessen the impact of mortgage interest tax relief cuts.
There has been a definite shift towards the purchasing of properties that are valued less than £150K according to research data that tracks 250,000 monthly mortgage product searches which is carried out on price comparison sites.
The figures show that the proportion of searches between July and September 2015 for properties less than £150K has risen by 14% compared to this time, last year ( from 21% to 35%). This compares to searches for properties between £250K and £500K dropping by 20% over the same period (from 44% to 24%).
With rental demand remaining strong across the country, landlords are opting for cheaper property because of the attractive yields. Landlords are also making the most out of low mortgage rates and the rising value of their existing property portfolio to take out equity and use that towards other properties.
The data also shows that there has been a shift away from searches in London and the South East to other parts of the UK where rents are still relatively high but the house prices are significantly lower.
At Barrows & Forrester we specialise in prime city centre residential apartments and student property so if you are intrigued about what you can get for less than £150K and the types of yields you can expect, please contact us now.