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Buy-to-let demand hit 12-year high in February

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  • 29/03/2016
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Buy-to-let demand hit 12-year high in February
Last month, 85% of estate agents reported a spike in the number of buy-to-let (BTL) investors rushing to complete before the incoming Stamp Duty surcharge of 3% on second homes on 1 April.

A report from the National Association of Estate Agents (NAEA) confirms the Chancellor’s announcement on Stamp Duty for additional homes made in last year’s Autumn Statement created a market frenzy.

However, Osborne told MPs last week he was willing to hand extra powers of control to the Financial Policy Committee later this year on top of the Stamp Duty and mortgage interest rate relief changes already in place targeted to burst the perceived buy-to-let bubble. Further announcements are also expected today.

Estate agents reported an average 463 house hunters in February – the highest since 582 in 2004 – chasing an average of 35 properties per member branch.

First-time buyers made up just 24% of total purchases as landlords squeezed them out of the market, said the NAEA.

Mark Hayward, managing director, National Association of Estate Agents (NAEA), said: “It is evident from February’s report findings that we’ve seen a real sense of urgency from landlords trying to complete on sales ahead of the Stamp Duty reforms– which now come into force next week. However, the mounting pressure and increased demand for housing has meant that first-time buyers have had to compete with landlords for property and as a result they have lost out.”

Hayward said the proliferation of first-time buyer government schemes, including the latest Lifetime ISA and Help to Buy schemes are helpful. But added that without more housing supply we ‘cannot fool ourselves’ into thinking we are doing enough.

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