Despite ongoing economic uncertainties, the UK’s rental market has seen a positive and significant impact from the stamp duty holiday extension, according to new research from property investment consultancy, Knight Knox.
The firm commissioned a survey of 500 UK landlords which saw 27% of respondents revealing that they are planning to expand their property portfolio in the next 12 months. Of those, 35% say that the Stamp Duty holiday extension has influenced their decision.
Typically, landlords have to pay a minimum of 3% 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 the 30th of June, when it will be reduced to £250,000 until the 30th of September.
Andy Phillips, Knight Knox’s commercial director, said: “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% 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 4% were planning to reduce their portfolio over the next year.
Andy concludes: “The property market plays a crucial role in the country’s economy, so it’s encouraging to see that during times of crisis, the government has been forthcoming with lifelines to help keep the wheels of industry turning.
“As long as developers can continue to bring high-quality property to market and landlords have the confidence to invest, the sector will remain buoyant and consumer demand for rental housing can be fulfilled.”
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