New to market rental adverts for properties soared ahead of the changes in Stamp Duty Land Tax on April 1st, research has revealed.
Property Partner, a property crowdfunding platform, analysed the number of new rental properties being advertised between 28th March-3rd April. It then compared these figures to those recorded between 21st-27th March in over 90 towns and cities across the UK.
Results show that in 85% of locations, there was a significant increase in the number of new rental properties coming onto the market.
Rises
In a number of areas, rises recorded were substantial. Telford in the West Midlands saw listings up by nearly 160% in the week of the changes coming into force. New to market properties in Stevenage nearly doubled.
Five of the top ten areas in terms of rise in rental properties coming to market were found to be in the North of England.
Of all major cities, London saw new property listings increase by 19.4% between 28th March-3rd April, in comparison to the previous week. In Manchester and Birmingham, new advertisements were up by 28.7% and 49.9% respectively.
New rental adverts soared ahead of SDLT changes
Final rush
Dan Gandesha, CEO of Property Partner, observed, ‘inevitably, there was a final rush by investors to complete on property purchases ahead of the 1st April stamp duty surcharge deadline.’[1]
‘More rental properties on the market is good news for tenants, but sadly this looks like a temporary blip. 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,’ he continued.[1]
Looking to the future, Mr Gandesha said, ‘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.’[1]
‘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,’ Gandesha concluded.[1]
[1] http://www.propertyreporter.co.uk/landlords/new-to-market-rental-properties-spiked-before-stamp-duty-dealine.html