LendInvest, the London based buy to let finance and bridging finance platform, has welcomed changes in planning permissions and stamp duty after reporting it has boosted the property market outside the M25.
The lender has seen a significant increase in client appetite in this area in relation to planning changes which have meant old commercial buildings can be converted to residential. It will also allow vacant buildings to be knocked down and replaced with more energy-saving new builds.
LendInvest has also reported an effect in the market outside of the greater London area following the stamp duty threshold being increased to £500,000 last month.
“This could grow even further in a post-Covid-19 world where commercial space might be in less demand and the government wants to focus on building homes, creating opportunities for investors who find the right property,” LendInvest said in a blog on its website.
“I have also noticed that the recent changes in stamp duty has helped boost the appetite even further.”
The lender stated that the Covid-19 lockdown restrictions have led to an increased demand to work from home and live outside of the commuter belt, resulting in greater yield for buy-to-let landlords and interest from developers outer suburbs which are increasingly in-demand.
Despite yield in London being less strong than in the North, LendInvest noted that there is still a significant number of excellent opportunities in the capital, such as to extend a property or add value by splitting a property up into several different ones.
“If you research hard enough you are still able to find excellent opportunities within the London market where you can gain both good yielding properties as well as excellent capital growth,” LendInvest said in the blog.
“As with anything, I feel knowing your market and sufficient research is key when investing and I continue to see good demand for both bridging and BTL within the London market.
“As previously mentioned I have already seen demand grow in the home counties as a result of lockdown and new remote working practices.
“Investors able to support this demand in The Home Counties will potentially reap the benefits, whilst the London market will maintain its familiar resilience.”
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The news comes after LendInvest increased its loan-to-values within its buy-to-let and bridging finance ranges as confidence returned to the housing market.
It has also launched a structured property finance team to provide tailored solutions to more complex property deals.