Today’s buy to let figures indicate that investor activity in the market is slowing, supporting our own findings, while the new government’s proposed increase in capital gains tax is also likely to further deplete these figures.
It is no surprise that the number of people falling into arrears and, as a result, the number of repossessions has fallen, with this reflected in current stock levels, but it is unlikely anyone would have guessed the extent to which it would fall. This is due in part to lenders working hard to help borrowers stay in their homes and low interest rates making mortgage debt more affordable. Off the back of this shortage when repossessed stock does become available it is snapped-up by eager buyers.
Although both sets of figures are comforting there is no room for complacency. The inevitable rise in interest rates is likely to lead to growth in the number of repossessions as people struggle to keep up with repayments.
