Buy-to-let sales jump 50% in August

Buy-to-let sales jump 50% in August

Buy-to-let sales were up by 54.1 per cent in August, compared to the corresponding month last year, hitting £3.31bn, according to Equifax Touchstone’s analysis of the intermediary market.

From January to August, buy-to-let sales reached £25.6bn, an increase of 30 per cent compared with the same period in 2014.

The analysis suggested that investors have been attracted by the continued economic recovery, low interest rate environment and deals on offers from lenders.

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Despite figures increasing year-on-year, August buy-to-let sales dropped by 12.5 per cent from the £3.77bn reported in the previous month, reflecting the holiday slowdown.

However, this was considerably less than the drop in sales of 20.8 per cent in the corresponding period last year, a sign of a much stronger buy-to-let market this year.

The data from intelligence provider Equifax Touchstone, which covers 92 per cent of the intermediated lending market, shows that residential sales for January to August were up 14.8 per cent compared to 2014.

Including the buy-to-let sales growth, total sales for the eight month period are up by 18 per cent year-on-year, with the average value of a residential mortgage in August being £183,337 - up from £170,371 last August.

Iain Hill, relationship manager at Equifax Touchstone, said that demand continues to rise and he expects this upward trend to continue in the coming months.

“Despite a fall in sales in August, which was slightly more than expected given the robust nature of the market so far this year, it’s promising to see sustained year-on-year growth.

“The current favourable market conditions, supported by low interest rates and the greater capacity for lenders to offer mortgages, have encouraged borrowers to enter the market.”