The rush to beat the 1 April second homes stamp duty deadline saw a big rise in new rental properties being listed in the week of the tax hike, according to a property crowdfunding website.
Property Partner says a fifth more properties were advertised in the first week of April compared to the previous week.
Property Partner looked at the number of new rental properties being advertised between 28 March and 3 April, and compared it to the period 21 March to 27 March in more than 90 towns and cities across the UK. In 85% of those locations, there was an increase in the number of new rental listings over the past week compared to the previous week.
In many areas, there was a significant increase in new rental properties advertised. Telford in the West Midlands saw rental listings up almost 160% in the week of the stamp duty deadline, compared to the previous week, and in Stevenage new ads almost doubled. While five out of the top ten areas in terms of a rise in rental properties being advertised, were in the North of England.
Of the major cities, London saw new rental property listings up 19.4% between 28 March and 3 April, compared to the previous week. While, in Manchester and Birmingham, new rental ads were up 28.7% and 49.9% respectively.
Dan Gandesha, CEO of Property Partner, said: “Inevitably there was a final rush by investors to complete on property purchases ahead of the 1 April stamp duty surcharge deadline.
“More rental properties on the market is good news for tenants, but sadly this looks like a temporary blip. The savings landlords have made may turn into losses further down the line. Future cuts to mortgage interest tax relief and likely interest rate rises, could wipe out profits and force many landlords to sell up.
“Longer term we’re likely to see the supply of rented properties dropping and rents increasing. The pressing issue is to get Britain building more homes for tenants, as well as buyers.
“The Government has changed the whole structure of the UK buy-to-let market and made it less attractive and viable for amateur landlords. Once the dust has settled on the stamp duty hike, anyone looking to invest in residential property would be wise to consider alternatives to traditional buy-to-let, which do away with the hassle, expense and tax implications.”
