Buy-to-let investors seek ‘to beat stamp duty hike’

THE region’s housing market has seen a rise in demand as a result of buy-to-let investors try to beat a hike in stamp duty.

This is according to the latest monthly residential market survey by RICS (Royal Institution of Chartered Surveyors)

During December, demand for homes in the region picked up, with 40% of chartered surveyors reporting a rise in new buyer enquiries (up from 19% back in November), citing a rush to beat April’s stamp duty rise as the reason.

From April, buy-to-let investors will be required to pay 3% more in stamp duty charges than residential buyers looking to purchase the same home. Chancellor George Osborne announced the change in the Autumn Statement last November, with the aim of helping more first time buyers get on to the market.

However, despite the rise in demand for homes in the North West, chartered surveyors in the region, once again, reported a lack of stock (properties) coming on to the market. Demand has continued to outpace supply in the region most notably for the past two years.

Jonathan Clayton of Blackpool surveyors Bentley Higgs & Co said: “A high proportion of our sales are to buy-to-let landlords, and although the poor weather over the past month affected sales activity, we’re anticipating a buoyant first half of the year. Buyer enquires are continuing to rise and buy-to-let-landlords are being encouraged by the chance to beat the 3% stamp duty surcharge.

 “However, we still need to see more properties, across all price ranges, coming on to the market to keep up with increasing demand.”

RICS chief economist, Simon Rubinsohn added “The housing market has experienced an unusually buoyant December. Those in the industry have been speculating that this is the result of the Chancellor’s announcement last November, with potential buy-to-let investors looking to pick up properties before the increased stamp duty levy comes into force next April.

“If that is the case, then we can expect to see the housing market, in all UK regions, heating up further over the next few months.”
 
The survey also revealed that house prices in London, the South East and East Anglia look set to rise by a further 5% over the next year, compared to a UK average of 4.5%, despite offering the poorest value for money in the UK.