Cost of Stamp Duty kicking in?
Lending to home buyers in London was down 19% in the first quarter of 2017 compared to the same period a year ago, the second quarterly fall in a row, the latest figures show.
Overall buyers borrowed £5.4 billion, down 3% quarter on quarter and down 22% year on year, taking out 16,700 loans, a fall of 5% compared to the previous quarter and 19% on the first quarter of 2016.
The data from the Council of Mortgage Lenders shows that lending to first time buyers also fell but remortgage activity was up to an eight year high although the actual number of loans was down.
Is there going to be a slump?
Informed sources feel the recent changes and increases in Stamp Duty Land Tax (SDLT) are restricting borrowers with investment property in the background from moving which is resulting in reduced demand and prices levelling, especially in areas where previously there have been sharp increases. In addition, due to the changes in taxation of interest on investment property, some with one or two investment properties have decided because the cost of management & borrowing, the returns make further purchases of buy to let property unviable.
With some very, very attractive fixed, discounted and tracker rates available for remortgaging, now could be exactly the right time to consider a remortgage!!!!