The Data
We have compiled some data to help the often tough act of predicting the future. Based on current figures from UK Finance, £18 billion worth of BTL lending for purchasing of property was spent in 2021, as sellers welcomed the drop in Stamp Duty. 2019 and 2020 saw record levels of property transactions, at 1,177,000 and 1,539,000 respectively. While it will most certainly fall this year and next, rising property prices are enticing more older home owners to sell up and move, possibly downsizing. buy to let yields are expected to remain stagnant, since although interest rates are rising, inflation is also on the up, and in turn less stakeholders in the property market. BTL lending is predicted to fall as interest rates are predicted to rise in wake of 8% inflation though rising property values and buy to let yields provide stability for property owners or leasers too.
Remortgaging
Finance UK added that they expect remortgaging to increase 22% to £33 billion in 2022 and 2023.
Many landlords see remortgaging as a quick solution to manage the cost of retrofitting homes to meet the band C energy certification that will be required by 2025 if government proposals go ahead.
The Reddbox Verdict
Plan ahead to beat any changes in regulations. Make sure to start your refurbishment works early in case of future price rises of raw materials. More lenders are offering products built for landlords who need to refinance to take on refurbishment works including some energy efficiency related work. And remember, a chimney and wood burner are always an economical choice that will meet the requirements and benefit both landlord and tenant.
Our offer:
There are still a pool of, albeit decreasing, energy providers that are offering rates slightly below the price cap. We have partnered with Switchd to provide you with a service that connects you to the best energy deals available nationwide. You can get a quote here.
Reddbox also has new insurance plans in the pipeline. Stick with us and soon you will be able to take out insurance, hire tradesmen and store documents all in the app, and let Reddbox calculate the figures for you, in time for the Making Tax Digital mandate.
Download the app and follow few screens to provide your details, and that’s it. Some of the key features why you should consider Reddbox are –
- A completely app-based, super simple booking process
- Option to pay for the service over few months without any additional interest or fee.
- You can book the service seven days a week, which means no need to disrupt your busy day
- A very transparent cancellation and refund policy.
- And the best one – Reddbox will automatically organise all the relevant documents such as the invoice and the certificate.