A property lawyer is forecasting a surge in buy to let purchasing in the coming months as the stamp duty extension and the promise of low interest rates form an irresistible combination for investors.
That’s the view of property law firm Wilsons which believes Chancellor Rishi Sunak’s Budget will spur new investors.
In the fourth quarter of 2020, 61,800 buy to let properties were purchased, the highest quarterly figure since 2017. Wilsons says the SDLT holiday was a significant contributor to this upturn in property transactions.
Buy to-let investors have purchased 102,267 properties since the SDLT holiday came into effect in July 2020.
Imogen Lea, a tax consultant at Wilsons, says: “The welcome three-month extension to the SDLT holiday gives potential property investors a second chance to purchase with no SDLT up to £500,000.
“The extension to properties valued at £250,000 or less, which will be introduced in July and run to September 30 could see more sustained growth in buy to let investments in parts of the country where property prices are lower, or in smaller dwellings.
“The million-dollar question, is whether this will be enough to keep the market buoyant in the medium and long-term?
“Landlords are also hoping that the end of the lockdown will see young professionals, many of whom have spent much of the crisis staying at their parents’ homes, return to renting in city centres.”
Lea concludes: “Interest rates in the UK are likely to remain low for the foreseeable future, which should attract more investment to the residential property market versus virtually zero interest on bank deposits and government bonds.”