With The Stamp Duty Break Coming To An End, How Will This Impact The Lettings Market?
On the 8th July 2020, it was announced that there would be a temporary suspension to Stamp Duty for all properties below £500,000 until the 31st March 2021. This caused a flood of new properties to the sales market and an influx of sales being processed.
There was also a reduction in the amount of Stamp Duty due for second homes. Previously the cost had been between 3% and 15% depending upon the purchase price, but this was reduced to 3% for any property up to £500,000.
However, with this due to end in the next few months, it has left landlords and agents alike wondering, ‘How will this impact the Lettings Market?’
The Taylor & Co team found that when this was initially announced, there was a rush of Buy-to-Let properties being advertised for sale to try and take advantage of this saving. However, there have also been a number of these who have sadly not sold and with the deadline approaching, those without a buyer are left wondering what to do with their property next.
We predict that this will lead to an influx of rental property becoming available, which will help to alleviate the current property shortage and unprecedented demand from potential tenants.
This will also be helped by the many investors who used the break in Stamp Duty to purchase Buy-to-Let properties, which are only now starting to come onto the rental market.
In conclusion, it looks as though this move will be a positive one for both the sales and rental markets and should benefit landlords and tenants alike.
As always, if you would like any further information or to chat to our friendly team please call 01747 416516 or email email@example.com