Buy to let Market Turbo-Charged in Wake of Stamp Duty Holiday Extension
The extended Stamp Duty holiday appears to be having a significantly positive impact upon the private rental market, recent research has revealed. A survey of 500 UK landlords shows that more than a quarter say they are planning to expand their buy-to-let portfolios in the next 12 months.
The extended Stamp Duty holiday appears to be having a significantly positive impact upon the private rental market, recent research has revealed. A survey of 500 UK landlords shows that more than a quarter say they are planning to expand their buy-to-let portfolios in the next 12 months.
A survey of 500 UK landlords by property consultancy Knight Knox has revealed that more than 25 per cent of respondents have plans to expand their property portfolios over the next 12 months, with 35 per cent stating that the Stamp Duty holiday extension has been responsible for their decisions.
Stamp Duty bracket to stay at £500,000 until 30th June
Typically, landlords must part with a minimum of three per cent in Stamp Duty Land Tax when purchasing a property at a cost of £125,000 or more. However, the Stamp Duty holiday has pushed the bracket for this rate up to £500,000, now until 30th June. It will be reduced to £250,000 on 30th September.
Commercial director of Knight Knox, Andy Phillips, says: “The last 12 months have been a total rollercoaster for the housing market. Lockdown 1.0 temporarily halted activity before Rishi Sunak’s announcement of the stamp duty holiday led to the industry facing one of the busiest periods for a decade.
“For landlords, the incentive has provided a welcome opportunity to purchase more properties while making significant savings. Appetite for rental property is high – particularly given that the financial impact of the pandemic could be affecting people’s plans to purchase – so buy to let is a fantastic investment in the current climate.”
“Landlords earning more than £20,000 net income per year renting properties”
The same research also uncovered that on average, landlords in the UK can earn more than £20,000 net income per year by renting properties, and that 88 per cent are feeling confident or very confident that the buy to let market will look positive for the next 12 months.
Two thirds of landlords also said that the pandemic had not had an impact on tenancies, and just four per cent had plans to cut their portfolios back over the following year.
Andy Phillips concluded: “The property market plays a crucial role in the country’s economy, so it’s encouraging to see that during times of crisis, the government has been forthcoming with lifelines to help keep the wheels of industry turning.
“As long as developers can continue to bring high-quality property to market and landlords have the confidence to invest, the sector will remain buoyant and consumer demand for rental housing can be fulfilled.”
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