Homeowner Mortgages Rise but not Enough to Affect Private Landlords

07 March 2012 Categories: News

Homeowner Mortgages Rise but not Enough to Affect Private Landlords

The number of homeowner mortgages approved by UK lenders during February rose by over 3500 when compared to the figures for January. February saw 58,728 new mortgage loans being approved as property buyers flocked to take advantage of the stamp duty holiday which is due to end on 24th March this year.

While these figures look promising they are considered to be a blip, and now the official date has passed by which home buyers can qualify for the stamp duty holiday it is thought the number of new homeowner mortgages being applied for will drop to previous levels.

In a somewhat connected report, a small number of letting agents and landlords have seen a slight drop in tenant demand over the last few months; mainly due to the increased number of people attempting to secure a homeowner mortgage. Now that the deadline has passed for the stamp duty holiday it is thought that the previous high levels of demand will resume.

Thankfully most letting agents and private landlords around the UK failed to see any change in property demand during January and February which shows that the stamp duty holiday had little effect on the number of people needing to rent rather than buy. With unemployment high and still rising, and the average household debt at a worrying level it seems that renting is not only the best option for most, it is also the option people are still choosing to take.