The Investor UK Housing Market

Did the UK Government really understand what the impact would be on the housing market when they decided to increase costs for Property Investors?

Literally over the past few years the Buy to Let market has significantly reduced. The access to quick cash for Developers has dropped and the second income stream for Estate Agents is reducing. As many became letting Agents after the last property slump.

The number of Buy to Let Investors now selling is on the up.

In tandem the number of conveyancing quotes being reviewed by Investors, on the Homebuyer Conveyancing website has increased which backs up this change.

What Will Investors Do Now?

Some Investors will have timed this perfectly as many will see their interest only mortgage term ending, where they will need to either remortgage or sell their property to pay off their loan.

Investors will maybe try the peer to peer market, but a lot of work has to go in for them to be comfortable, after all they can’t control other peoples actions and often peer to peer is used to raise funds to support a business and not always for growth.

It does seem a pity that instead of making small stepped changes to the housing market that we have completely eroded all Investor confidence. London was once the sure thing, where Investors bought for capital growth. Not anymore and many Investors will now be catching a cold as London pricing is no longer increasing at the rate it was.

As always it will be the cash buyers that can progress since they will be able to grab a bargain from Owners that want a fast sale.

The bottom line is that Conveyancers will be busy managing the Buy to Let sales and the Lender Companies will see a rise in Buy to Let remortgaging but a drop in Buy To Let New Business.

It will take a number of years for the supporting Investor industries to recover.