February saw a bustle of buy-to-let activity as landlords raced to beat the looming Stamp Duty deadline, according to data from Connells Survey & Valuation.

The number of buy-to-let valuations carried out rose by 34% compared to the same month last year. Remortgaging activity – which includes buy-to-let remortgaging activity – jumped 41% over the same period.

Buy-to-let activity saw a month-on-month increase of 25%, while remortgaging volumes climbed 6% in February compared to the previous month, largely driven by buy-to-let remortgaging.

The 3% Stamp Duty surcharge on second homes or buy-to-let properties is due to to take effect on transactions completed after 1st April 2016.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Buy-to-let investors and those remortgaging with the aim of buying a second home are racing against the clock. Activity from both these groups is picking up pace on a monthly basis as the 1st April Stamp Duty deadline looms and people hurry to complete their transactions before being hit by the 3% surcharge on their buy-to-let property or second home.

“Expect this activity to reach a crescendo in March before calming in the second quarter of the year. Buy-to-let investors will be calculating the impact the Stamp Duty hike is having on their rental yields, while those thinking of remortgaging to fund a second home will weigh up whether it’s still financially viable for them to do so.”

Homebuyer boost

Connells also noted that the home mover and first-time buyer sectors have experienced strong monthly rises in valuation activity. The number of valuations carried out for first-time buyers surged by 36% between January and February 2016, while those carried out for home movers grew by 35% over the same period.

Bagshaw added: “While first-time buyers and home movers were relatively slow out of the starting blocks in January, they are certainly making up for lost time now.”