A record number of Landlords buy in cash last month.
Countrywide yesterday 14th February released their Monthly Lettings Index – January 2017 headlined ‘Cash landlords hit a record high’.
In the highlights they reported that January 2017 saw a record 61% of landlords buy in cash, up from 59% last year and 41% in 2007. In the North West of England landlords are most likely to pay in cash while London landlords are most likely to use a mortgage and that rents across Great Britain rose 2.6% in January 2017 but continued to fall in the capital.
Commenting Johnny Morris, Research Director at Countrywide, said: “On average landlords sell a home once every 17 years meaning as prices have increased, a significant amount of wealth has built up in the sector. This is now fuelling cash purchases. With the forthcoming tapering of tax relief on mortgage interest payment, landlords have less of an incentive to borrow, suggesting more cash activity in 2017.
“Rents are rising at twice the pace of last January and there are signs that rental growth is starting to pick up in much of the country. Ten months after the introduction of the stamp duty surcharge the number of homes on the rental market is showing signs of coming down. If this fall continues over the next few months, it is likely to support rental price growth.”
Read the Countrywide Monthly Lettings Index January 2017 report in full click here