Buy to let investors are now gravitating towards houses rather than flats says the latest research from RICS’ which was published this week.
The RICS’ new buyer enquires series also reported that demand from first time buyers has increased.
In September, surveyors were asked how buy to let demand had changed in relation to both houses and flats. A net balance of two percent more surveyors reported a rise than a fall in buy to let enquiries in aggregate; tellingly, interest was generally stronger for houses than flats.
London bucked the trend by reporting a positive balance of eight percent more surveyors reporting higher (rather than lower) demand for flats compared to a negative balance of 16 percent for houses.
This is arguably a reflection of the different nature of the London rental market and the cost and availability of houses in the capital.
Simon Rubinsohn, RICS chief economist, said: “House price falls and lower interest rates have gone some way to tempting first time buyers back into the market.
However, buyers still need to have greater deposits to access the market with lenders remaining generally cautious. This is making it hard to translate this interest into hard transactions.
“Meanwhile, the firmer tone to the market has also rekindled enquiries from buy to let investors albeit in a more measured way than was visible prior to the onset of the credit crunch.”
