Rental properties rise more than a fifth ahead of Stamp Duty hike

by: Rebekah Commane
  • 06/04/2016
  • 0
Rental properties rise more than a fifth ahead of Stamp Duty hike
The rental market experienced a rush in new rental properties being listed as landlords looked to beat the 1 April Stamp Duty deadline.

However, the rise of more than 21% in advance of the Stamp Duty surcharge is not predicted to last.

Research from property crowdfunding firm Property Partner studied rentals advertised on Rightmove between 28 March and 3 April, compared to the previous week, and found that more than 85% of the 90 UK towns and cities analysed has experienced a rise.

Telford in the West Midlands saw the highest increase in rental listings in advance of the Stamp Duty deadline, with a rise of 159% week-on-week, while new ads in Stevenage almost doubled.

Property listings in the capital were up 19% in the period studied, while they rose 3% and 50% respectively in Manchester and Birmingham.

Chief executive of Property Partner Dan Gandesha said it was inevitable that the market would experience a final rush from investors in advance of the Stamp Duty surcharge deadline.

“More rental properties on the market is good news for tenants, but sadly this looks like a temporary blip,” said Gandesha.

“The savings landlords have made may turn into losses further down the line. Future cuts to mortgage interest tax relief and likely interest rate rises, could wipe out profits and force many landlords to sell up.

“Longer term we’re likely to see the supply of rented properties dropping and rents increasing. The pressing issue is to get Britain building more homes for tenants, as well as buyers.

“The government has changed the whole structure of the UK buy-to-let market and made it less attractive and viable for amateur landlords. Once the dust has settled on the Stamp Duty hike, anyone looking to invest in residential property would be wise to consider alternatives to traditional buy-to-let, which do away with the hassle, expense and tax implications.”

 

 

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