Energised! Stamp Duty Holiday turbocharges rental property sales
The extended stamp duty holiday is having a significant positive impact on the rental market, according to new research.
In a survey of 500 UK landlords by property consultancy Knight Knox, over a quarter of respondents revealed they are planning to expand their property portfolio in the next 12 months.
Of those, 35 per cent say that the Stamp Duty holiday extension has influenced their decision.
Typically, landlords have to pay a minimum of three per cent if their property costs £125,000 or more. However, with the stamp duty holiday, the bracket for this rate has been increased to £500,000 until June 30 when it will be reduced to £250,000 until September 30.
Knight Knox’s commercial director, Andy Phillips, says: “The last 12 months have been a total rollercoaster for the housing market. Lockdown 1.0 temporarily halted activity before Rishi Sunak’s announcement of the stamp duty holiday led to the industry facing one of the busiest periods for a decade.
“For landlords, the incentive has provided a welcome opportunity to purchase more properties while making significant savings. Appetite for rental property is high – particularly given that the financial impact of the pandemic could be affecting people’s plans to purchase – so buy to let is a fantastic investment in the current climate.”
The research also found that on average, UK landlords earn over £20,000 net income per year from renting out properties and 88 per cent are feeling confident or very confident about the buy to let market outlook for the next 12 months.
Two thirds of landlords said the pandemic had had no impact on tenancies within their properties and just four per cent were planning to reduce their portfolio over the next year.