Buy-to-let market remains appealing to investors
It appears investors have not turned their backs on the buy-to-let market in the wake of recent stamp duty increases.
According to Treasury figures, more stamp duty has been collected since the 3% increase was introduced in April 2016 than in the previous year.
Between June and December 2016, stamp duty on second homes accounted for 21% of the total stamp duty collected by the Treasury.
These figures indicate that investor interest in the buy-to-let market remains strong, despite the government’s efforts to slow investor activity, thereby making it easier for first-time buyers.
As well as the additional 3% surcharge, landlords are due to be hit by a cut in mortgage interest tax relief, a measure that will be phased in over several years.
However, instead of leaving the market, many investors have explored other avenues available to them, such as turning their buy-to-let properties into HMOs or transferring them into limited companies.
With affordability still an issue for many would-be property buyers, rental demand is strong in Islington, London, and across the UK as a whole.
Existing landlords and potential investors alike can benefit from this demand for rental properties, whilst capitalising on a growing need among tenants for longer-term tenancies.
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