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Landlords’ Race to Beat April Stamp Duty Surcharge Confirmed by New Figures

Nearly 50% of homes sold over the last quarter of March were purchased by landlords as they rushed to beat the new Stamp Duty deadline on April 1st, according to a new report.

Residential Property Investments UK

Nearly 50% of homes sold over the last quarter of March were purchased by landlords as they rushed to beat the new Stamp Duty deadline on April 1st, according to a new report.

Prior to the introduction of the new levy, the UK witnessed exponential increase in house prices – a trend largely attributed to landlord racing to beat the Stamp Duty deadline.


The report by Countrywide confirms landlords were a key driver in increasing market activity over the first quarter of 2016, with figures showing nearly 50% of homes sold being purchased by landlords in the final 15 days of March compared to 18% over the same period of 2015.


Moreover, the report estimates landlords accounted for 23% of all property acquisitions in the month of March, compared to 13% in 2015. This increase in landlord purchasing activity resulted in 22% more homes entering the rental market in the first quarter of 2016.


Although the increase in homes available in the rental market has relieved some of the pressure of rental growth, demand from prospective tenants is still in surplus compared to the available stock.


London, which saw the highest increase in buy-to-let property available rising by 40% in the year to March, still experienced an 8% increase in tenant numbers over the same period.


Commenting on the increase in number of rental properties, research director at Countrywide Johnny Morris said that rental growth deceleration is “not likely to persist”, due to the increasing number of prospective tenants looking for a home.

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