The July market has been somewhat slim picking, despite a few more properties coming to the market than last month.
The main considerations are the stamp duty holiday (both phases) and the furlough scheme deadline – both of which should reduce competition and increase the supply of properties, making it easier to secure deals for our clients.
As a company, we are ramping up our efforts to increase our capacity by:
• Building relationships with new agents
• Building relationships with other property professionals in the industry
• Exploring opportunities to deliver our service in another city
Buy to Let Sales Update
The market has certainly quietened down since the end of Phase 1 of the Stamp duty holiday, but it’s still a seller’s market for BTL properties in Leeds, as Phase 2 of the stamp duty holiday, for purchases up to £250k doesn’t end until 30th September.
The supply of properties making it to the market is also still low, owing to people being on furlough. This makes their future somewhat uncertain, and many will be waiting until after the end of the scheme, which is co-terminus with the stamp duty holiday deadline, to make the decision to move home.
Some people are speculating that these factors will lead to a reduction in property prices – this is not our expectation. While we believe that there may be an easing of the market forces, it won’t be enough to cause prices to drop in the £100-200k bracket, certainly not by any significant amount.
As long as your strategy is to buy and hold for the long term, we would still encourage people to buy now, especially as there is likely to be considerable inflationary pressure over the next decade, increasing house prices.
Shiv Haria – Lifestyle Property People
Leeds Buy to Let Mortgage Update
July has seen a little bit of a return to normality in the mortgage market after the frenetic end to June given the partial end of the Stamp Duty holiday. A number of lenders have re-entered the market with attractively priced products and an obvious clear intention to lend more in the second half of the year than they did in the first.
Looking at pricing at the moment, at 75% loan to value, 2 year fixed rates in personal names are as low as 1.5 to 1.6%, and around 2.75 to 3% if purchasing in a limited company (subject to status). Whilst the headline rate always looks attractive, it is prudent to consider the overall cost of the mortgage as lender fees have crept up for limited company purchases.
Fortunately, staff are returning from furlough and lender lead times have reduced.
Andrew Milnes – Mortgage Advice Bureau
Leeds Buy to Let Lettings Update
The Leeds lettings market is currently very buoyant and there are simply not enough properties for the number of tenants looking. Every property we list at the moment receives multiple applications and is let within a week!
The most in demand properties tend to be 2-3 bedroom family homes with a garden and a lot of families are taking the summer holidays as an opportunity to move home without disrupting the school year. We have also had an influx of working professionals moving out of the city centre in search of more space, as more and more companies normalise working from home.
Landlords that can accommodate these types of renters are in a great position and are achieving longer tenancy terms with higher-than-expected rents!
May-September is our busiest time in the Lettings industry and this year is set to be no different. We believe the market is going to remain strong throughout August and well into September.
Rebecca Taylor – Linley & Simpson
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