Charles Holland, Head of Residential Development and Investment, commented: “The Stamp Duty hike is a hurdle but one which the buy-to-let market is ready to face head-on. While the changes are the latest development in a cumulative assault on the sector from the Treasury, investors will remain resilient and optimistic. This is particularly true for those purchasing property at the sub 900,000 end of the London market. Buyers at this level are off-setting the costs of the new levy against the savings they have made from the Chancellors previous Stamp Duty reforms in 2014, which reduced the duty payable on all homes worth below £938,000.
“Combine this good news with the capitals traditionally high demand for lets and investors still have plenty to be cheerful about. A minority of short-term investors perhaps those thinking of buying a second home both for rental and personal use may be deterred by the changes just like a few were warded off when the Chancellor reformed landlord tax relief and the wear-and-tear allowance. However, longer-term, repeat investors, who understand the London market and the rewards it can offer with a bit of patience, will view this as a blip, rather than a bombshell, on an otherwise positive buy-to-let radar.”
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