Big rush in landlords purchasing property late March to beat extra 3% stamp duty tax
According to Countrywide in late March 50% of properties sold where to buy-to-let investors. Over £28 billions worth of property was sold in March up 76% of the previous year. 23% of properties sold was to landlords for the whole of March up from 13% on the previous year.
This surge in buy-to let properties has resulted in more properties available for rent resulting in many places experiencing a slow down in rental increases. London had an increase of 40% of available properties to rent but the number of tenants looking was only up 8% resulting in a sudden decrease in rental growth rates.
“Quite at odds with the intentions of the policy, the first measurable effect of the introduction of the new stamp duty rate has been to increase the number of homes owned by landlords, although this will likely be a temporary effect as we see reduced investor activity in future months” says Johnny Morris, research director at Countrywide.
“The increase in supply of homes to rent from landlords bringing forward purchases seems to have taken the edge off rental growth. A similar increase in tenants looking for a home to rent though would indicate this may not persist. The large number of sharers, and people living with parents means there is a big store of pent up demand in the rental market.”