Buy-to-let investors interest drops after impact of 3% stamp duty increase
Interest for landlords buying property has dropped 27% accordingw to Rightmove.
Sam Mitchell, Rightmove’s Head of Lettings, said: ‘This waning of interest definitely seems to predict a slowdown in the buy-to-let market, but what’s not yet clear is if this will only turn out to be a short-term pause.
‘It could be that some investors are waiting until the tax changes have some time to bed in before they review their business and continue to make purchases.
‘If this removes some of the competition for smaller properties then it could spell good news for many first-time buyers with a deposit ready as they may find now is the ideal time to make a move.’
Rightmove also reported the four top locations for best yields were Peterlee in Durham the highest at 9.1 per cent, followed by Bootle in Merseyside at 8.6 per cent. Birkenhead offers a yield of 7.8 per cent, with Stanley in Durham at 7.7 per cent.
Mr Mitchell said: ‘These areas where you can buy a two bed property for around £60-70k seem to offer a sound investment as long as the demand is there from tenants, so it’s worth speaking to local agents about what the rental market is like.
‘Whilst the highest demand for rental properties is often in the South and the East of England, this quarter’s data shows demand is growing in Manchester in places like Ashton-Under-Lyne and Stalybridge so they’re worth considering this year as well.’