Buy-to-let has ‘bounced back’ from SDLT surcharge, says study

Investor enquiries are on the rise and Britain’s buy-to-let property market has recovered from a three per cent Stamp Duty Land Tax (SDLT) surcharge imposed upon purchases of second homes in April.

The news follows a study carried out by property website Rightmove, which revealed that the number of enquiries from would-be landlords rose significantly last month.

Investor enquiries were 30 per cent higher in September than they were in May – shortly after the surcharge was introduced, according to Rightmove’s data.

“Investor activity has bounced back following the Stamp Duty changes,” said Sam Mitchell, head of lettings at Rightmove.

However, Mr Mitchell added that investors were increasingly seeking sweeter deals in the wake of SDLT changes.

“Some agents report that many investors are looking to knock sellers down on their asking prices to make up for the additional Stamp Duty they now need to pay,” he said.

Earlier this week, estate agent Haart called upon the Government to cut Stamp Duty costs in order to drive market activity.

Haart CEO, Paul Smith, said: “This month’s monitor shows landlords are starting to return to the market despite the extra three per cent hike in Stamp Duty imposed by George Osborne”.

He added that the news was “a positive that needs to be encouraged,” but stressed that further “action needs to be taken” to increase all-round activity in the market.

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