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  • Property-a-holics

    Landlords increasingly buying for cash



    The proportion of buy-to-let landlords acquiring property in cash increased to 61% in January, the highest level since records began a decade ago, according to a major estate agency.

    Buy-to-let investors who have opted to acquire property since the introduction of the 3% stamp duty surcharge last April have relied more heavily than ever on cash to fund their investments, the estate agency group claims.

    Over the last decade, the proportion of landlords purchasing property with 100% cash has steadily increased from 41% of landlords in 2007 to 61% today.

    Landlords purchasing properties in the North of England are most likely to use cash to fund their purchase, reflecting the fact that the least expensive homes are most likely to be bought with cash.

    The company report that 70% of buy-to-let acquisitions in the region are in cash, a larger proportion than anywhere else.

    Over the last year almost two thirds of homes costing less than £125,000 were paid for in cash. 

    Full/source article 

    This change in landlord behaviour is put down to landlords having accrued significant equity in their portfolios, enabling them to release cash, and also to mitigate the impact of Section 24.

    See - The power of owning a property with no mortgage on it

    Remember you can download our FREE Section 24 "Landlord Survival Guide" which we produced in association with Bamboo Auctions.

    The guide is a simple and easy to understand download.


     CLICK HERE TO GET YOUR FREE SURVIVAL GUIDE 

    It would be interesting to hear from the PT community if you are increasingly buying for cash and if you are then refinancing to pull back your cash, or leaving properties unencumbered.

    SEE ALSO  -         Change in landlord behaviour re: Ltd Co's

    UP NEXT -             Large equity - how to get at it
     
    DON'T MISS -        Section 24 - landlords must take action now

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