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A record number of buy to let investors have turned to remortgaging to release money for home improvements, according to Countrywide.
According to Countrywide’s research, 171,421 investors remortgaged their buy to let investment property in the last year. Of this number, 9,523 did so in order to take money out and spend it on their investment property. This figure is up considerably from 8,459 in 2017. It is also three times more than in 2016.
In the last 12 months, 5.6 per cent of the landlords who re-mortgaged opted to release cash to fund improving their property. This is up from 1.9 per cent in 2016.
Regionally, the greatest increase was found in the East of England. In the East during the last year one in ten landlords who remortgaged their property released money to be spent on home improvements. This is up 6.8 per cent in the last two years.
Whilst every region across the UK has seen a rise, regions in the South have seen the most notable growth in landlords releasing cash. 7.4 per cent of landlords situated in London who were re-mortgaging released money for home improvements. This is up 4.4 per cent in the last two years.
It was in London that landlords also took out the most money to spend on buy to let improvements, equating to £35,470 on average. This figure showed huge regional variation and is over three times the amount an average landlord in Yorkshire & the Humber withdrew.
When considering Great Britain as a whole, the average landlord re-mortgaging to make improvements took out £22,850.
Research director at Countrywide, Johnny Morris, spoke out about the findings: ‘The additional transaction costs incurred from the stamp duty changes for second-homeowners means more landlords are choosing to invest in their properties, refurbishing and improving them and holding on to them for longer to maximise gains.’