A recent article, ‘Stamp duty hike pushes up London rents’, featured in FT Advisor looks at how annual rental growth in London bounced back in July.
Connect Mortgages CEO, Liz Syms, also gives her thoughts on why we are seeing the turnaround after eight consecutive months of decline and the effects the stamp duty rise in April 2016 had on this.
“Professional landlords who have been buying in London have probably not stopped, and the market that appears to have been affected by the stamp duty changes is the secondary home market.
“If you have someone living in their residential home who decides they wish to move, if they retain that property they will have to pay the additional 3% stamp duty levy on their new home.
“This is how many people became landlords in the past, the additional cost of the increased stamp duty is putting people off doing this, which in turn reduces the amount of housing stock available to the private rental sector, thus increasing rents on the limited stock available.”