Interesting new data has indicated that there was actually a fall in buy-to-let mortgage sales in March. This is surprising given the expected rush of business to beat the additional stamp duty deadline.
Research from Equifax Touchstone suggests there was a decline of 26.2% in buy-to-let mortgages during March.
The report also showed that residential sales were up by 1.4% from February to hit £12.95bn. These were the greatest monthly sales figures since the financial crash in 2008.
However, combined residential and buy-to-let sales in the intermediated market fell by 5.1%, or £855.7m from the previous month.
By region, Scotland was the only area to see an increase in sales in March. Northern Ireland saw the sharpest drop, with sales down by nearly 20%. London saw falls of almost 10% month-on-month.
In addition, data from the report also showed the average value of a residential mortgage was £190,091 and £157,819 for buy-to-let let. These figures were up from the £179,187 and £157,819 respectively, as seen in March.
Buy-to-let mortgage sales fell in March
Iain Hill, Relationship Manager of Equifax Touchstone, noted, ‘recent buy-to-let mortgage flows indicate that borrowers took the advice of their lenders and initiated transactions in good time to avoid an eleventh-hour panic.’
‘The big question from here is, to what extent will the new stamp duty rates discourage investors from entering into new deals? With so much economic uncertainty, property remains an attractive investment option for many people. Given the rollercoaster first quarter of 2016, it will be interesting to see where sales trends go from here,’ Hill added.