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The first quarter of 2018 saw a rise in buy to let purchase activity in London, according to new research from the Commercial Trust.
Market share for buy to let mortgage applications in the capital increased for the first time since the second quarter of 2017. They also rose from 12.4 per cent in the fourth quarter of 2017, and up from 16.5 per cent in the first quarter of 2018.
The South East still pulled ahead overall, with its market share grown from 17.2 per cent in Q4 of 2017 to 19.2 per cent in Q1 of 2018.
The largest quarterly increase in market share was recorded by the East Midlands. The region saw a 5 per cent increase in the first three months of 2018.
Scotland and Wales also saw a growth in market share over the same period by nearly 2 per cent.
Chief executive at Commercial Trust Limited, Andrew Turner, said: ‘From our latest quarterly data, it is clear that property investment in London and the South East is very much alive and kicking – and if anything, growing. The report perhaps also reflects the effect of the introduction of the 3 per cent stamp duty surcharge in April 2016, which of course would have been more keenly felt by investors in the more expensive properties found in this part of the country.’
He continued: ‘I think the data also reflects a regained sense of confidence in London and the South East, among landlords with capital to spend. Similarly, the North West continues to see significant infrastructure investment and projects like HS2 will have the potential to further enhance opportunities for economic development in the long term. This in turn may attract more businesses, creating jobs, migration and further rental demand, whilst at the same time potentially contributing to property price growth.’