Just eight per cent of homes sold in the first quarter of 2020 were bought by landlords bringing buy-to-let purchases to a record low, data from Hamptons International has shown.
This is the lowest proportion of buy-to-let purchases since the estate agency began collecting data in 2010.
It is a significant drop from the 15 per cent high recorded in the last quarter of 2019, which was also the highest level seen since Q4 2016.
The purchase total in the first quarter of 2020 was also down from the 11 per cent recorded the same time last year.
London has seen a sharp drop in buy-to-let purchases, making up just five per cent of residential purchases in the first three months of the year. This was down from the 18 per cent recorded in the last quarter of 2019.
Market changes
Research from Hamptons released earlier this year showed the number of landlords in the UK market had dropped to its lowest level due to tax and regulatory changes. The research also noted a drop in the number of privately rented homes in the country.
Also, the current coronavirus pandemic has resulted in a shift in financial circumstances for landlords and their tenants, potentially impacting purchases.
A spokesperson for Hamptons said: “Landlords sprung back into action in December following the General Election result, but since then, they’ve retreated from the market once again.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
