A BUSY SUMMER AHEAD FOR THE BTL MARKET
The buy-to-let sector has seen a raft of positive news in recent times as lenders are becoming increasingly active and landlords are taking advantage of some favourable conditions. The recent change in the stamp duty threshold has served to generate an even greater volume of enquiries and this demand is showing no sign of slowing down anytime soon.
Of course, the additional 3% stamp duty surcharge on additional properties will still apply, but investors will benefit from not having to pay the standard stamp duty on purchases of up to £500,000. According to research from Hamptons International, the stamp duty holiday will save the average investor almost £2,000 which will encourage more landlords and investors to add to their portfolios before next spring, and many are looking to take advantage of this sooner, rather than later.
Even before this stamp duty announcement, according to Paragon Bank, four in 10 mortgage advisers expected to write more buy-to-let business over the next 12 months, and this optimism is being reflected throughout the market.
Looking forward, there is a fundamental understanding that rental demand will remain strong and opportunities will emerge for a variety of landlords. Many have already unlocked capital to invest and grow their portfolios, which has resulted in a solid rebound across the buy-to-let market.
The fact remains that the long-term fundamentals underpinning demand for BTL have remained unchanged over the course of this challenging period and with an increasing number of households turning to the private rented sector to meet their housing needs, we can look forward to an even busier summer than previously anticipated.
Ying Tan - 24.07.2020 | Posted in