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.
Full story available from Property Reporter: http://www.propertyreporter.co.uk/landlords/cash-landlords-at-highest-levels-in-10-years.html