Buy-to-let surges in February

Buy-to-let transactions surged in February ahead of the 3% stamp duty surcharge deadline.

The number of buy-to-let valuations rose by 34% from February last year, with remortgaging activity jumping by 41%.

Activity was also 25% higher than in January 2016.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Expect this activity to reach a crescendo in March before calming in the second quarter of the year.

“Buy-to-let investors will be calculating the impact the Stamp Duty hike is having on their rental yields, while those thinking of remortgaging to fund a second home will weigh up whether it’s still financially viable for them to do so.”

He added: “But behind these somewhat frantic figures there is an underlying story of steady, long-term growth. Despite taking some political heat recently, the buy-to-let market continues to attract investment off the back of its potential returns, while the remortgaging sector remains popular with those looking to get a better mortgage or release capital on their home for investment purposes.”

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