Nationwide: Buy-to-let market is ‘gradually recovering’

The article highlights Nationwide’s insights on the impact of Stamp Duty changes on the buy-to-let market. While buy-to-let purchases involving mortgages have seen gradual growth over the past year due to rising rental yields and improved mortgage rates, activity remains below historic levels.

Cash-based purchases by landlords have been more resilient but are facing pressure from higher transaction costs linked to recent and upcoming Stamp Duty reforms. These changes, coupled with regulatory uncertainties, have cooled this segment of the market.

Nationwide expects short-term volatility in transactions as buyers rush to complete purchases before the new Stamp Duty changes take effect in April, leading to a spike in March and a subsequent dip in the following months.

Additionally, the February House Price Index shows a 3.9% year-on-year increase in house prices, with the average price reaching £270,493.

Read the full article at Landlord Today