While much of the focus on the stamp duty holiday has fallen on prospective buyers, there is an opportunity for landlords and property investors. While landlords looking to expand their property portfolio will have to pay the additional 3% stamp duty charge, they will find there is a reduction in the overall price they pay when buying property.
Steve Olejnik is the Managing Director of Mortgages for Business, and he said; “Clearly, landlords need to take advantage of the stamp duty holiday before the window closes in March next year. Property investors are in a better position to qualify for a mortgage now that reduced stamp tax allows them to wield a larger deposit. Furthermore, if the measures Rishi Sunak has put in place underpin property values, the cut will help those looking to remortgage as well.”
Steve continued by saying; “Less obviously, landlords may not appreciate they need to act while they are well-placed to move in a way that owner-occupiers are not. We know property investors have been remortgaging with a view to picking up some bargains. Owner-occupiers have not been doing the same. Landlords have been preparing since the start of the lockdown, remortgaging to enlarge potential war chests with an eye on bagging bargains in the future. First Time Buyers don’t have that flexibility and owner-occupiers haven’t been remortgaging in the same way.”
Steve also said; “That means landlords are currently very well-placed to seize the day. But that advantage won’t last forever. That’s why smart investors will start expanding their portfolios immediately, rather than waiting and then scrambling to try to do deals at the last minute.”
Be proactive and beat the rush in the market
With the stamp duty holiday in place until 31st March, many landlords will think they have plenty of time, but there is a lot to be said for being proactive. Sometimes there are delays in property transactions, and some buyers will find issues conspire against them making the saving they wish to make.
Also, any landlord or property investor who is in a position to act quickly should do so before a greater number of buyers are active in the market. It is better to look for property when there are fewer buyers providing competition in the marketplace.
Enhance your chances of finding the market which is right for you
There will be likely buyers arranging a mortgage and looking for suitable homes right now. There will also be many more who plan on doing so in the next few months. A landlord who can arrange their buy-to-let mortgage and make an offer on property before more buyers enter the market will enhance their chances of success.
As an experienced letting agent serving the Bridgwater community, and many of the surrounding areas, we are here to help. We promise to stay in touch with the latest technology, helping our clients to achieve more, and we aim to support the local community as best we can. If there is anything, we can assist you with; please contact Andrew Lees Lettings today.