Record numbers of Landlords paying cash for buy-to-let properties

Record numbers of Landlords paying cash for buy-to-let properties

The number of landlords buying properties without a mortgage increased to 61% in January this year, which is the highest level since records began in 2007.

The all-cash deals have been increasing steadily from 41% in 2007 to the 61% high we’re seeing now and have been become even more popular ever since the 3% stamp duty surcharge was introduced last April.

This is due to the large amount of equity that landlords of investment property have built up due to the rising house prices which they are choosing to re-invest directly in property.

It’s also likely that his has been impacted by new rules which mean lenders must carry out stricter affordability checks on buy-to-let mortgages – meaning it is simply easier to pay cash. Add to this is new cap on the level of mortgage interest tax relief that can be claimed that is coming into force from 1 April 2017 and it suddenly becomes clear why so many more landlords are choosing to pay cash.

This trend can be seen right across the market with 65% of landlords paying cash for homes costing less than £125,000 but equally 64% of buyers buying property costing over £1m also not taking a mortgage.

This is good news for you if you’re selling your home in an area such as East Kilbride where there are a lot of renters.  Our town is popular amongst landlords looking for new properties and investments.

If you’re a Landlord on the lookout for a new property, get in touch with Joyce Heeps Homes today.