Buy-to-let investors unfazed by stamp duty surcharge

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.

belgravia property

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.

For more on this story, click on the link below:

Landlord Today

Alistair Boscawen

Alistair has 32 years’ experience as an estate agent, starting in the country house department of one of London’s main international agencies before moving to the Knightsbridge house department of the same agency and learning the difference in values between freehold, long lease and short lease houses in Knightsbridge, Belgravia, Chelsea and Mayfair.

All articles by Alistair Boscawen


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