Buy to let investors should be exempted from the three per cent stamp duty surcharge even if purchasers of holiday homes still have to pay it, says a property expert.
Mary-Anne Bowring - who earlier this week controversially suggested that some tenants should feel free to ask their landlords if they received a mortgage holiday during the Coronavirus crisis - says the disruption and uncertainty caused by the virus will cause a spike in rental demand as would-be buyers hedge their bets.
In addition, she believes rental properties will also be wanted by those who want to buy but who are unable to access mortgages as lending criteria change.
“A stamp duty holiday would no doubt cause a rush of transactions and help breathe life into a housing market that has been put into deep freeze in an effort to battle Coronavirus” she says.
Bowring, who is group managing director at property management firm Ringley, says the government should encourage BTL investors to return to the rental market to help meet the rising demand for rental homes and drive transaction levels.
“The government should be looking at long-term solutions as well as short-term sticking plasters when it comes to fixing the UK housing market” she suggests.
“Eliminating additional stamp duty for buy-to-let investors would help stimulate the supply of rental homes while also driving wider activity in the housing market. Landlords are a crucial source of development finance through off-plan sales and will help support getting Britain building again.”
Bowring's contribution on tenants and landlords' mortgage holidays provoked a debate amongst Letting Agent Today readers - you can check that story out here.