Romans says one in four of its buyers in the first half of this year has been an investor, suggesting the buy to let market is in good shape despite deterrents like the three per cent additional homes stamp duty surcharge.
The agency says this supports the data produced by HMRC this month suggesting that the number of investment property transactions increased by three per cent in the last quarter.
Romans also cites a survey undertaken by Direct Line for Business which found that over a third of landlords felt positive that house prices would increase and over a quarter felt the same about rental prices.
“Investors appear to have realised that the substantial returns on offer in the property market far outweigh the initial costs, including an increased stamp duty tariff. With tenant demand remaining extremely high across the South East and buy-to-let mortgage interest rates as low as 1.7 per cent, conditions are perfect for landlords” says Romans’ lettings manager, Michael Cook.
“The increased concern around prosecution and fines has led to an increase in landlords utilising our fully managed service, a trend seen across the country with the National Landlords’ Association reporting a seven per cent in the number of landlords using a letting agent” he adds.