Most landlords are thinking of stepping up their investment in buy-to-let properties before the introduction of the new stamp duty this April 1st, so we may see a significant increase in the rental accommodation.
The Chancellor proclaimed the plans to boost stamp duty on Buy-To-Let purchases, as well as the added 3% on top of the usual rate. This will most likely add about £3,500 to £7,500 to the cost of a £250,000 property.
This is the reason why most prospective landlords are eager to beat the time limit to enter the buy-to-let market or to add to their current range of properties.
Therefore, tenants living in the capital are set to gain the benefits of this amplified supply of rental homes.
Latest survey showed that 60% of BTL landlords want to step up their investments before April 1st, so as to beat the new plans for stamp duty, indicating the probable boost to renters across the UK.
There’s often an outpouring of activity in London’s rental sector all throughout the first few months of the year. People are hoping that this would continue as landlords rush to make BTL investments and tenants enthusiastically snap this property up.
It may be a practical tactic for landlords to buy properties before the new stamp duty rate takes into place.
Lastly, investor revenues have averaged to around 10% since the turn of the millennium, giving emphasis to the long-term asset of London’s rental sector.