real estate

Buy to let Investment Rush The Stamp duty dead-line on the 1st of April has caused a Buy to let Investment Rush. Solicitors have been working round the clock over the Easter weekend to get transactions completed before the new tax increases. Buy to let investors have been active and have been acquiring properties at a frantic rate as agents report an increase in enquiries. There has been an uplift in the number of people wanting to move quickly to get the deals concluded before Friday’s stamp duty deadline. The Buy to let Investment Rush drove the property market demand to a 12-year high in February, consequently it was also recorded that first time buyer transactions fell during this time. Many being gazumped by cash buyers and buy to let investors quick off the mark. The latest housing market report from the National Association of Estate Agents (NAEA) showed that 85% of estate agents reported noticeable increase from buy to let investors. As the demand soared there were on average 463 houses hunters registered per branch, the highest since August 2004. The average number of agreed sales per branch completed in February, was up from the number recorded January. Less than a quarter of recorded sales were to first-time buyers in February due to the Buy to let Investment Rush. The demand was coming largely from investor buyers, which increased competition for an already stretched housing stock. NAEA managing director Mark Hayward said: “It is evident from February’s report findings that we’ve seen a real sense of urgency from landlords trying to complete on sales ahead of the stamp duty reforms.” From April 2016, the outlook should pick up for 1st time buyers, with less demand from the time pushed investor market. The new schemes available for like the Help to Buy Isa, Help to Buy scheme and the new Lifetime Isa should help the so called “generation rent” young first time buyers. These measures will stand to bridge an affordability gap. However, the crux of the problem though is that there is issue with the supply of housing stock, and until more homes are built then we will continue to see prices rising. […]