Investors are purchasing property to beat the April stamp duty increase
The Royal Institution of Chartered Surveyors (RICS) stated demand for property hit a 3 month high in December after the announcement by finance minister George Osborne to increase stamp duty paid by investors by 3% from April.
Jeremy Leaf, a London-based property valuer, said in a statement issued by RICS “The deadline for the increase has prompted many investors to bring forward buying decisions this month and contributed to a general increase in buying activity”.
The Bank of England is also looking at other ways to reduce lending the buy-to-let market.
Osborne said his stamp duty changes will raise an extra £1bn for the Treasury by 2021, some of which will go on house building and regeneration of local communities.
With other major tax changes hitting landlords in 2016 and 2017 it is essential landlords review their options before making decisions.