My Home Move, the UK’s largest conveyancing firm, has found further evidence of a boom in the buy-to-let sector and second home market.
The provider’s data reveals a 46% increase in buy-to-let and second home activity since November, when Chancellor George Osborne announced a 3% Stamp Duty surcharge on buy-to-let landlords and second homebuyers.
Further Evidence of Boom in Buy-to-Let Sector
Yesterday, new figures from Connells Survey & Valuation confirmed that landlords are rushing to purchase new rental properties ahead of the additional charge.
The surcharge is set to be enforced in just over three weeks’ time, on 1st April.
Research by My Home Move revealed that 99% of conveyancers have seen a rise in the amount of clients looking to complete purchases before the deadline.
The firm’s CEO, Doug Crawford, says that his earlier prediction – that the property market would experience a boom in the first part of the year – had come to fruition.
My Home Move has also reported a surge in inquiries from those hoping to avoid further tax changes, by buying additional properties as a limited company. Recent data shows that 40% of landlords are considering forming a limited company.
Details of the Stamp Duty surcharge are due to be disclosed in next week’s Budget, on 16th March.
Meanwhile, the Royal Institution of Chartered Surveyors (RICS) has forecast a slowdown in house price growth once the Stamp Duty changes have been implemented.
The RICS has described the current state of the property market as a short-term rush of buy-to-let activity.
LSL/Acadata has also witnessed a boom in buy-to-let sales over the past month. It says that this has helped drive a surge in property sales, up 12% on the month, and 9.3% annually.
We will keep you updated on the announcements in the Budget and continue to offer advice for landlords at a time of change in the buy-to-let sector.