Number of properties bought by investors jumped 71% in January to beat April 3% stamp duty increase
According to Countrywide Estate Agents the number of properties sold to Landlords and property investors jumped 71% in the rush to beat the 3% increase in stamp duty deadline for 2nd properties in April.
George Osborne has introduced an increase in stamp duty of 3% on all second properties purchased after 1st April. This has increased the average price of a property by £5000 in the rush.
However the number of properties sold by Landlords has also increase from 17% to 21% compared to a year earlier. This is due to the government increasing the tax burden on landlords in the future including the removal of the ability to offset mortgage interest against income which will result in a large percentage of landlords making a loss on their investments in the future.
Johnny Morris, research director at Countrywide, said: “The jump in activity comes despite many landlords being concerned by the current focus of Government on home ownership at the expense of rental homes… We’ll likely see a drop in investor activity after April.”