This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
A new report has suggested that in the three months from the additional 3% Stamp Duty surcharge, property purchases from landlords accounted for just 8% of total property sales. This represents the lowest proportion since 2010.
Further statistics from the report by Countrywide shows that the largest shift in activity was prominent in the North, Midlands and Wales.
Stamp Duty slowdown
The slowdown came after a surge in transactions during the first quarter of the year, when landlords made up 18% of the total number of home buyers in the country, the highest level seen since 2010.
In the North East, 29% of homes sold were purchased by buy-to-let landlords during the first quarter of the year. However, this figure dropped to 9% in the second quarter.
Wales saw a drop from 19% to 3% and the East Midlands 22% to 8%.
Increased purchasing activity from buy-to-let landlords at the beginning of 2016 has led to the number of homes available to rent rising by 22% in June in comparison to June last year.
London and the South West have seen the largest increase in homes available to rent, which numbers in these regions rising by 33% and 55% respectively.
Slower growth
Rising supply, coupled with affordability issues, has cut the annual rate of rental growth. The majority of British regions have seen slower growth rates in the course of the year.
Typical rents in Britain rose to £960 during June, 3.6% greater than at the same time last year.
Johnny Morris, research director at Countrywide, noted, ‘the lull in landlord activity is mostly due to investors bringing forward purchases in the first three months of the year but upcoming changes to mortgage tax relief and the prospect of heightened uncertainty in economy during the lead up to the referendum, will also have made investors warier of entering the market.’[1]
‘Those extra homes bought by landlords at the start of the year are still making their way to market. Despite tenant numbers still growing, the increased supply is slowing rental growth,’ he added.[1]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/7/countrywide-says-buy-to-let-purchases-now-at-a-six-year-low