Buy to Let Sales Soaring

Buy To Let sales soared in November 2020. Nearly 15% of all sales were to buy to let landlords. It’s reported as the highest figure for 4 years.

The latest research was carried out by Hamptons. They state that landlords are rushing to complete, along with other buyers, before the Stamp Duty Holiday which will end in March.

Landlords are paying an average price of £180k which is £80k less than owner occupiers.

Based on that average landlords can save £1100 in Stamp Duty if they complete before 31^st March.

Within UK regions the largest sales were in the Midlands and the North.

Aneisha Beveridge, Head of Research at Hamptons said: “Just like in the months leading up to the introduction of the three per cent second home surcharge back in 2016, landlords have rushed to take advantage of reduced stamp duty bills”

“But the difference between today and 2016 is that the stamp duty cliff edge is around five times smaller, meaning the financial impact of missing the deadline is reduced.

“With over half of investor purchases made in cash during November, those taking advantage of the holiday are disproportionately larger investors expanding portfolios rather than new investors starting out. And with landlords also making up a rising proportion of sellers, in many cases, larger landlords are buying homes from smaller landlords.”

The rush between landlords, property investors and owner occupiers is causing a backlog in mortgage application processing times.

If you are thinking of taking advantage of the stamp duty holiday, get in touch and I can help you find the right mortgage and try to avoid the backlogs where possible.

Thanks for reading…

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