Buy-to-Let Landlords Urged to Take Advantage of Stamp Duty Holiday

September 14, 2020

Share to: 

Article Summary

Investment
  • Property market experts are urging buy-to-let investors to make use of the current stamp duty holiday on property purchases.

  • Many investors have been preparing for the reopening of the property market since lockdown by re-mortgaging their portfolios. This gave them the potential to snap up investment opportunities in property once the market reopened.

  • Mortgage for Business found that 46% of landlords had increase the size of their loans; much higher than the long-term average of 38%.

Investment opportunities in property

Property market experts are urging buy-to-let investors to make use of the current stamp duty holiday on property purchases. Landlords are encouraged to expand their portfolios by taking advantage of investment opportunities in property while the scheme is in place.

The Managing Director of Mortgages for Business, Steve Olejnik, said, “Clearly, landlords need to take advantage of the stamp duty holiday before the window closes in March next year.”

Investors are at an advantage

Property investors need to move quickly to get the full benefits of the stamp duty holiday; before owner-occupiers are able to do so.

Many investors have been preparing for the reopening of the property market since lockdown by remortgaging their portfolios. This gave them the potential to snap up investment opportunities in property once the market reopened.

Owner-occupiers have not been doing the same. First-time buyers don’t have the same flexibility, meaning property investors are currently in a great position to expand their portfolios. But this won’t last forever and investors shouldn’t hang around.

Buy-to-let landlords are also well-placed to qualify for new mortgages. The cut in stamp duty means investors now have more cash to put down a larger deposit. The measures should help those still looking to remortgage too, as the scheme may underpin property values.

 

Savvy investors

Many savvy property investors have been remortgaging their portfolios since April, ready to jump on any investment opportunities in property as soon as possible. The stamp duty holiday will only make them even keener to do so.

Mortgage for Business found that 46% of landlords had increase the size of their loans; much higher than the long-term average of 38%.

The stamp duty holiday is just one of the reasons why now is the perfect time to invest in buy-to-let property; something perceptive investors understand well.

 

Huge savings to be made

Chancellor Rishi Sunak’s stamp duty holiday has increased the threshold for stamp duty land tax (SDLT) to £500,000 for all properties in England and Northern Ireland. The scheme is set to continue until March 31st 2021, after which the rates will revert to normal.

Investors into buy-to-let property, purchasers of second homes, or overseas investors will still need to pay the current 3% SDLT surcharge. But while the scheme is running, property investors can still make savings of almost £15,000 on the purchase of a £499,000 property due to the cut in stamp duty.

 

What is property investment?

Put simply, property investment is property purchased with the intention of generating financial returns for its buyer. These returns could be in the form of rental income through buy-to-let properties, house price growth through the future sale of the property or both. Property investments can be owned by individuals or organisations and can be short, long or medium term.

 

Get in touch

For all of the latest information about Manchester property investments and to start your own property investment journey, contact the experts at North Property Group now.

Share to: 

Explore our property in Manchester

The Bailey

From £262,450

   Gross Yield: 6%
   In Construction
   Est. Q4 2024
   Lease Length: 250 Years

Related Articles

Manchester named top UK city for Foreign Direct Investment

Manchester was recently recognised as a leading city for foreign direct investment in the UK, coming only second to London.

Read More →

Red Bank Manchester – A Regeneration Project and Investment Opportunity

Manchester has become one of the UK’s best property markets, with thousands flocking to the city each year to work, study, and play…

Read More →

Manchester named ‘creative capital’ of the UK

For many property investors in the UK’s 2023 buy-to-let market, the standout feature has been the remarkable rental growth.

Read More →

Property Investment Thrives as Rental Prices Increase, Landlords Seeing an Extra Months Rental Income per year

UK house prices have seen a positive trajectory for the third consecutive month, demonstrating resilience despite earlier forecasts of a downturn.

Read More →

Manchester Secures Coveted Spot on The New York Times’ 2024 ’52 Places to Go’ List

For many property investors in the UK’s 2023 buy-to-let market, the standout feature has been the remarkable rental growth.

Read More →

UK House Prices Reflect Resilience with Third Consecutive Monthly Increase

UK house prices have seen a positive trajectory for the third consecutive month, demonstrating resilience despite earlier forecasts of a downturn.

Read More →

Come talk to our professionals to learn more about the UK property market now!

Learn more about investing in Manchester by downloading our guide today