It is very clear that government changes including the property surcharge have caused a rush of buy to let investors trying to complete deals before the end of March. This is reinforced by a report from the Bank of England confirming that there has been an increase in the number of buy to let mortgage applications. I myself have been involved in a number of transactions throughout the whole of Scotland with investors who are in a hurry to purchase or alternatively make changes to the structure of their property portfolio now to avoid the extra surcharge. This is causing prices for traditional buy to let properties to go through the roof and will skew property price comparison figures for the next few months. It will be interesting to see what impact there is on rents to make these higher prices work. I am also concerned to see what happens come the 1st of April 2016 and I suspect that there will be a lull or plateauing in prices and activity for a couple of months. A clear example of unforeseen consequences! I will continue to report on trends.
Partner – Head of Property