Activity in the buy-to-let property market is slowly rising following changes to stamp duty land tax (SLDT), according to research by Paragon Mortgages.
A survey of more than 1,000 landlords found that while buy-to-let activity remained subdued in Q1 2016, landlords are slowly returning to the property market.
- 19% of landlords say they expect to purchase a property in the coming year, up from 17% in Q4 2015.
- 16% say they want to sell a property, down from 19% in Q4 2015.
- 39% of landlords reported an increase in tenant demand, up from 34% in the previous quarter.
Stamp duty rates for people investing in buy-to-let property increased from 1 April 2016. Landlords purchasing a second home or investment will have to pay a 3% surcharge on additional property over £40,000.
John Heron, director of mortgages at Paragon Mortgages, said:
“In the previous quarter we saw more landlords respond very negatively to the announcements on stamp duty and tax on rental income with more intending to sell rather than buy property, this trend is now reversed and purchase intentions have risen.
Landlords are clearly taking the view that buy-to-let remains an attractive long-term, demand driven investment, which continues to outperform other asset classes.”