If you are wondering whether there is scope for landlords to benefit from the stamp duty holiday, you will be glad to know there is. At Andrew Lees, we are on hand to assist you, and we can help you make an informed decision regarding your next move.
There is also guidance from industry professionals, and there is a consensus of support for landlords.
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.”
Landlords have an opportunity to expand their property portfolio
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.”
If there is one thing that experienced landlords know about, it is working hard and battling for every success. Being a landlord in England can be rewarding, but it isn’t an easy role. There is a need for landlords to work hard, and smart, and this often involves calling on experts for support.
Seize the day!
Steve continued by saying; “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.”
Analysis undertaken by Mortgage for Business, on data from April and May this year indicate:
30% of property investors who took out BTL mortgages at this time did so to expand their portfolio and cash reserves. This was done to minimise their risk.
46% of landlords had increased the size of their loans. The long-term average for this action is 38%, so more landlords were active in safeguarding their finances at this time.
Steve Olejnik also said: “This is all about expectations. At the moment, sellers are grateful for a sale and there are plenty of potential sellers who would put their property on the market if they thought they could get a deal done. Currently, sellers aren’t trying to grab the money that buyers had tucked away to pay for stamp duty – cash that was earmarked for the taxman. But the closer we get to March 2021; the more sellers are going to start making bids to grab the money that buyers had originally allocated to the government. “
For buyers who can act quickly, which includes landlords who have sufficient funds, will find as we move closer to the stamp duty deadline, more opportunities to buy property will become available.
Steve Olejnik continued: “This is all about expectations. At the moment, sellers are grateful for a sale and there are plenty of potential sellers who would put their property on the market if they thought they could get a deal done. Currently, sellers aren’t trying to grab the money that buyers had tucked away to pay for stamp duty – cash that was earmarked for the taxman. But the closer we get to March 2021; the more sellers are going to start making bids to grab the money that buyers had originally allocated to the government.”
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.