Research from property crowdfunding platform Property Partner found that there was an 11.5% increase in new properties being listed in April, compared to March, following the “stampede” to beat the Stamp Duty surcharge deadline, but chief executive, Dan Gandesha predicted that available rental properties will dry up.
“The rental market experienced a much-needed boost in April – unfortunately, this was created by investor frenzy to beat the Stamp Duty hike, and supply is unlikely to continue on an upward trajectory,” he said.
“If anything, options for tenants could become more limited in the next couple of months as traditional landlords balk at the prospect of paying the surcharge now, and losing mortgage interest tax relief from next year.”
The 3% Stamp Duty surcharge on buy-to-let properties was introduced on 1 April and landlords will no longer be able to claim 45% tax relief on their monthly mortgage interest payments. Instead they will only be able to claim the basic rate of 20%. The changes will be phased in over a four-year period from April 2017.
The Property Partner research found that there was an increase in the number of rental listings in 82% of 90 locations analysed between March and April.
The highest surge was seen in Worcester in the West Midlands, where listings increased by 48.9% month-on-month. Listings in London were up 9.1%.
“There is still strong tenant demand, but the government has changed the traditional buy-to-let landscape, and this will have ramifications for the rental market in the longer term,” said Gandesha.
“That demand will increasingly have to be met by professional landlords like Property Partner.”