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Posted on June 9th 2016 by admin-movingin

Stamp Duty surcharge starting to hit buy-to-let sector, claim

Original Author: Marc Shoffman 

The Stamp Duty surcharge on buy-to-let properties may be starting to bite, it has been claimed.

A crowdfunding platform, Property Partner, says new rental properties listed by landlords in May were down 5.7% on March levels before the extra 3% surcharge was introduced.

Every month, Property Partner – which invites investors to take out shares in the ownership of individual properties – looks at the number of new rental properties listed on Rightmove in 89 major towns and cities across the UK.

After the stampede of landlords putting rental properties on the market in April, last month saw a sizeable, but not altogether surprising, 15.4% drop in new rental listings.

Worcester experienced the biggest decrease in rental supply in May from 481 to 276, a drop of 42.6% following a near 50% surge in new listings in April. New rental listings were also 14.6% below March levels. Bedford saw a huge 41.7% drop in new rental listings in May from 266 to 155 compared to April, and 33.5% down on March.

Dan Gandesha, chief executive of Property Partner, said: “June’s figures will show whether this is just a market adjustment, or something more fundamental. It’s unfortunate timing with the EU referendum just two weeks away.

“But April’s Stamp Duty changes are just the first in a series of additional costs being piled on traditional buy-to-let. In the longer term, the private rented sector must be professionalised, to provide Generation Rent with enough good-quality homes at rents they can afford.”