Housing Investment Rebounding On Improved Market Conditions And A Narrowing Spread Between Rental Yields And Mortgage Rates

The value of home loans committed to by investors has recorded a sharp rise since June, rising a cumulative 11.6% over the three months ending August 2019; the fastest rate of growth in the value of investment loan commitments since November 2016.  The rise in investment activity comes after a period of relative inactivity, with investor participation falling from 43% of market activity in mid-2015 to a recent record low of 25.8% in July this year.