Private investors also bought many homes to rent out in the first half of this year, despite government measures to halt this. This is evident from data from the Land Registry and a tour of various providers of mortgages for home lessors, reports The Financial Times (FD) Tuesday.
Small investors often buy homes and then do not live in them themselves, but offer them in the free rental sector. This makes it more difficult for starters, for example, to buy a home.
Governments are not happy with this. The municipalities of Utrecht and Amstelveen, among others, have prohibited the purchase of a home for rent. There will also be a national ceiling for rent increases in the private sector and the transfer tax will increase for home landlords early next year.
It does not scare off small investors for the time being. Providers of landlord mortgages, so-called buy-to-let mortgages, find that they are increasingly providing such loans. For example, NIBC saw its portfolio grow by 7 percent in the first six months of this year. Three new buy-to-let providers, which started shortly before the corona crisis, together have already provided some 300 million euros in mortgages.
Data from the Land Registry also shows that in the first half of this year, investors in the four major cities accounted for nearly 40 percent of home purchases. In the rest of the country, that share is about 20 percent. The Land Registry also saw that the number of transactions by investors in the first six months of 2020 grew faster than that of other groups, such as transferors or starters.