More Landlords paying cash for buy-to-lets

The percentage of landlords now paying cash for buy-to-let properties reached 61% in January 2017, the highest since records began in 2007.

Since the introduction of the 3% stamp duty surcharge in April 2016, Landlords choosing to buy now rely heavily on cash to fund their purchases.  In 2007 41% of Landlords purchased a property without a mortgage, this figure peaked at 58% in 2010 before dropping back.

Landlords in the North of England are more likely to use cash to fund their purchase; with 70% of landlord acquisitions in the North West of England being paid for in cash, a larger percentage than anywhere else.  However, London Landlords are most likely to use mortgage finance.  As house prices in the capital rise, the number of landlords not using a mortgage has correspondingly declined.

Cash purchases are now driving the top and bottom of the rental market with the most and least expensive homes being purchased with cash.

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