Both the Bank of England and buy-to-let investors will now be watching the impact of the extra 3% stamp duty which was announced last week by George Osborne in his autumn statement. The announcement, which catapulted many into a state of disbelief, was delivered alongside a pledge to encourage a vast house-building programme and to extend Help To Buy by 2021.
Experts believe strongly that these changes will suppress transactions post April 2016, and more importantly, cause an increase in demand over the next four months as many take advantage of being able to avoid additional costs. Concerns have been raised as buy to let mortgage holders will now have to potentially pay up to 15 per cent stamp duty on future purchases and lose out on mortgage interest tax relief.
However, there is a silver lining for those smart enough to jump on the bandwagon sooner rather than later. Fewer landlords will come into the market after April 2016, meaning there will be a huge lack of supply and rents will rise substantially. This makes the purchase of buy to let properties increasingly appealing at this moment in time. In addition, great deals are around at this time of year as the market traditionally calms.
To find out more about Inspired Homes and how you can secure your buy-to-let investment for just £234,950, call our Sales team on 020 7495 0523.