Stamp duty deadline is speeding up landlord consolidation

first_imgHome » News » Housing Market » Stamp duty deadline is speeding up landlord consolidation previous nextHousing MarketStamp duty deadline is speeding up landlord consolidationHamptons says 15% of all sales last month were larger landlords rushing to hoover up properties being sold by exiting smaller operators.Nigel Lewis14th December 20200584 Views Large landlords are buying up smaller landlords’ stock as they join the rush to complete purchases before the stamp duty holiday ends.Hamptons Monthly Letting Index reports that 15% of all sales agreed in November went to landlords, the highest figure for four years.More than half of all investor purchases were made in cash, indicating that many of those taking advantage of the holiday are larger investors expanding portfolios rather than new investors starting out.Across 2020, investors are set to buy about 134,000 homes, up slightly from the 133,000 bought in 2019.Midlands and NorthRegionally, the rush has been concentrated in the Midlands and the North; 22% of homes sold in the West Midlands were bought by investors, with 18% in both the North East and North West.In London, it’s 15%, up 2% from three months ago. Landlords paid an average of £180,000 per property, about £80,000 less than that paid by an owner-occupier.Hamptons says this means a typical investor who still pays a 3% surcharge will get a stamp duty bill of £5,400 if they complete before the holiday ends, which rises to £6,500 if they miss the deadline.Across Great Britain, the annual rate of rental growth more than doubled from 1.4% in October to 3% in November, while London rents rose annually by 0.3%, the smallest increase anywhere in England.Aneisha Beveridge, head of research (pictured), says the rental market has shown signs that it’s shaking off its Covid-induced hangover.She adds: “With nearly a fifth fewer new rental homes coming onto the market than last year, it has put upward pressure on the recovery in rental growth.“It is, however, likely that the homes being bought by landlords now will hit the rental market early next year which could serve to stifle rental growth in 2021.”Read more about Hamptons.Hamptons landlords PRS Aneisha Beveridge December 14, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more

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