🏘️ Property investors sold 35,000 more properties than they bought in 2022, data shows
Investors are selling up as mortgage rates soared higher than loans for non-investment properties following last year’s mini-Budget, hitting a high of 8 per cent.
The average two-year fix for buy-to-let landlords is now 5.95 per cent, up from 2.9 per cent in February last year.As property investors typically use interest-only mortgages, where they only pay back the interest each month, not the full capital amount, this magnifies the effects of rate changes and can lead to landlords getting into financial difficulty.
The Government has also taken away tax perks that landlords enjoyed in previous years, as well as hitting them with higher stamp duty costs. “Landlords have been hit with a double whammy of higher borrowing costs and less generous tax treatment,” said Lucian Cook, head of residential research at Savills. “Greater exposure to higher rates and a fall in the availability of mortgage credit is one reason why their share of the market fell over the period and many landlords who have been active since buy-to-let took off in the early 2000s are now nearing or in retirement, and selling their properties.
Higher costs are also being passed on to renters, who are dealing with an increasingly competitive market as demand
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