Fresh research from the Nottingham Building Society has revealed that the changes in stamp duty rules coming into effect on Friday has failed to deter the majority of investors.
Data from the report shows that just one in seven existing and would-be landlords have shelved plans to add to or make an initial investment property purchase.
Increases in Stamp Duty
The study indicates 14% of existing and potential landlords have now decided against adding or starting their portfolio as a direct result of the changes. Nationally, interest in investment properties remains strong, in the face of fears that the alterations and spiralling costs of buying would curb investors’ enthusiasm.
Further analysis shows 78% of respondents said they would consider investing in property as part of their retirement plans.
Over the last three months, brokers have reported a surge in interest from would-be landlords looking to invest before the 3% increase in stamp duty charges. 35% of brokers said they had seen a marked increase in inquiries from potential buy-to-let customers over the period.
One in seven landlords undeterred by stamp duty land tax changes
Strong
Ian Gibbons, Senior Mortgage Broking Manager the Nottingham Mortgage Services, noted, ‘the buy-to-let market remains strong despite a period of uncertainty as lenders and customers assess their options ahead of stamp duty and tax changes.’[1]
‘People should only invest in buy-to-let if they can afford to it and makes financial sense for them. But that said it clear that demand for property investment is not going away any time soon with the research showing people still very much value property as part of retirement planning. The tax and stamp duty changes are complicating the calculations on buy-to-let but given the risks of stock market investment and the low interest rates there is a strong case,’ he concluded.[1]
[1] http://www.propertyreporter.co.uk/landlords/78-of-landlords-refuse-to-be-stopped-by-stamp-duty-changes.html