Rising numbers of BTL products on the market

The report highlighted that, once again, remortgages outperformed purchases in all categories aside from HMOs, where purchase numbers were slightly higher.

Yields for semi-commercial property also rose in Q1 making it the second highest yielding property type.

David Whittaker, managing director of Mortgages for Business, said: “With tenants looking for less expensive accommodation and landlords looking for higher yields it is no surprise that the number of HMO purchases has risen in the last quarter. Even though remortgage transactions were higher this is not to say purchase numbers were down. All types of residential investment showed a marked increase in the number of purchase transactions as investors rushed to beat the 3% stamp duty surcharge deadline.

I would expect to see the number of landlords purchasing semi-commercial property to rise in the coming months as mixed use properties are technically classed as a commercial premises and as such will not be liable for the 3% stamp duty surcharge.”