End of stamp duty holiday positive for landlords
- 15th December 2009
- Landlord Property News
Fewer void periods predicted for landlords, as those who missed the stamp duty tax break stay in rentals.
According to research conducted by property website Zoopla, 115,447 home buyers benefited from the tax break during its first year, saving £173 million.
However, with the Chancellor Alistair Darling's decision not to extend the stamp duty holiday past the New Year many are predicting a positive turn for landlords in the rental market.
With mortgage lending still heavily restricted, first-time buyers who failed to take advantage of the tax break on all properties below £175,000 are now more likely to take the option of letting property.
Phil Calderbank, director of Property Portal says: “Landlords can look forward to a busy winter with few voids and stable rents.”
Stephen Ludlow says: "This is good news for buy-to-let landlords who have taken advantage of the lower property prices to add to their property portfolio."
Furthermore, from these changes landlords are predicted to enjoy higher rents in the New Year. According to November Rental Index from Findaproperty.com, between October and November, the average UK rent rose 0.1 percent, with the annual difference falling to -2.5 percent.
Findaproperty.com Director, Michael O'Flynn, commented: “We are now seeing a clear trend of recovery in the rental market, with stock levels declining and prices recovering.
“This is good news for landlords but for tenants it means that the days of discounted rents, juicy incentives and plenty of high quality stock to choose from are probably drawing to a close."
Landlords can look forward to stable rents.
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