Temporary removal of Stamp Duty Land Tax is driving up house prices
Chancellor Rishi Sunak announced in July a temporary removal of the Stamp Duty Land Tax in the UK in a bid to lessen the economic aftermath of the COVID-19 pandemic. Just two weeks after this announcement, the UK saw a dramatic increase in the number of homebuyers, with the number of homes sold for over the asking price surging to all-time highs. The trend in recent years appears to be that when the Stamp Duty Land Tax decreases, house prices soar to new heights and vice versa.
In the last two months, there has been a 45% increase in first-time buyers, with buy to let investors looking for new projects increasing by 28%, driving the demand for both completed and off-plan developments. The latest research in finance by Moneyfacts indicates resilience in the buy to let market, with product choice “steadily increasing since the start of August, supporting reports that house market activity may be experiencing a mini-boom". This is great news for buy to let investors as whilst the market is booming, the number of “new prospective tenants hit its highest recorded level as demand from renters continues to grow”.
There has also been an impact on lenders for buy to let investments, with the latest data suggesting further evidence of the provider’s appetite to lend in this sector, which is fantastic news for investors looking to invest or refinance with lower deposits and equity. With Liverpool also named the safest UK city for families to live in, this also explains the demand for buy to let investment opportunities in the northwestern city with average prices hitting £175,000.
You can find out more about the buy to let opportunities on offer in Liverpool and the UK by clicking here or calling us direct on +44161 713 3883 today. Our team of experts is happy to discuss your investment journey with you.