Buy To Let Property Boost In The Budget
Amongst all the banner waving and fanfares that accompanied the 1p reduction in fuel duty in the budget, there was a little gem of an announcement that could have a big impact on the buy to let market.
Things are already looking up for landlords as they have been able to raise their rents this year as tenants fall over themselves to move into rented accommodation rather than buy their next home.
So what is that hidden gem then?
It’s probably not for the ordinary landlord, but for institutions looking to buy large portfolios of rental properties, or professional landlords looking to extend their portfolios significantly, it is a potential gold mine.
What was announced is bulk buyers of residential property will be charged stamp duty for the entire transaction on the average price and not the total value.
So if a landlord buys 50 houses and fifty flats, for example, then the stamp duty due on the flats would significantly reduce the average value of the stamp duty due on the total value of all 100 properties.
The landlord would save hundreds of thousands in stamp duty!
So that almost unnoticed part of the budget could have a big impact on the buy to let market. It could also boost house prices as institutional level landlords rush to buy property after property.