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TODAY'S OTHER NEWS

Stamp duty deadline drives surge in rental properties

The number of rental properties spiked by more than 20% in the final week before the stamp duty surcharge was introduced, new figures show.

The data covers more than 90 UK towns and cities and shows how the 3% surcharge has driven buy-to-let investment in recent weeks.

One fifth more properties were advertised compared to the previous week, according to research by property crowdfunding platform Property Partner.

Telford saw a 160% increase in new rental listings over the week, while in Stevenage new ads almost doubled.

Of the major cities, London saw new rental property listings up 19.4% between 28 March and 3 April, compared to the previous week.

In Manchester and Birmingham, new rental ads were up 28.7% and 49.9% respectively.

Dan Gandesha, chief executive of Property Partner, said more rental properties on the market is good news for tenants, but this looks like a temporary blip.

“The savings landlords have made may turn into losses further down the line. Future cuts to mortgage interest tax relief and likely interest rate rises could wipe out profits and force many landlords to sell up.

“Longer term we’re likely to see the supply of rented properties dropping and rents increasing. The pressing issue is to get Britain building more homes for tenants, as well as buyers.”

Gandesha said the Government has changed the whole structure of the UK buy-to-let market and made it less viable for amateur landlords.

“Anyone looking to invest in residential property would be wise to consider alternatives to traditional buy-to-let, which do away with the hassle, expense and tax implications.”

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