Written on 7 February 2017 by Alistair Boscawen in Property News
Buy-to-let investors are still adding to their property portfolios despite recent stamp duty increases.
According to new figures from HMRC, the number of second homes liable to pay stamp duty rose to 62,800 in the final quarter of 2016, an increase on the previous two quarters.
Meanwhile the Council of Mortgage Lenders (CML) states that landlords borrowed more (£3.2 billion) in November last year than in any other month since the stamp duty rise in April that same year.
These figures suggest that investors are still dabbling in the buy-to-let market, enticed by the possibility of capital appreciation, high rental yields and, especially in areas where there is high demand for rental properties, low void periods.
Stamp duty rises and Brexit have led investors to review their investment strategies. However, in the Belgravia market, and the wider prime London market, committed investors and second home purchasers are still taking the plunge if they find the right location. Overseas investors, attracted by the still-weaker pound, also continue to buy into the luxury market.
Despite government attempts to subdue buy-to-let activity, investors are still attracted to residential property as a form of investment, and Belgravia maintains its ‘safe haven’ status.
The rental market is busy, with many choosing to rent in the longer term instead of buying.
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