The stamp duty holiday will hopefully help buying a home more affordable for many people. However, there is criticism for the measure, with many industry experts stating it does very little, if anything at all, for first-time buyers.
There is a suggestion the stamp duty holiday is more beneficial to existing homeowners looking to upscale their home. Many industry experts have also suggested buyers in London and the South East of England will enjoy a greater benefit than buyers in other parts of the country.
Stamp duty holiday lowers cost of buying property
It should be remembered though that the stamp duty holiday also provides an opportunity for buy-to-let landlords. There is an opportunity for landlords to lower the amount of money they spent on rental property.
If you have been considering expanding your property portfolio, the next few months might provide you with an ideal opportunity to do so. This is the case being made by Mortgages for Business, who implore landlords to at least consider the possibilities offered to them by the stamp duty holiday.
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.”
Are you ready to expand your property portfolio?
Not every landlord will feel the stamp duty holiday is an opportunity for them to expand their business. With the UK being in a recession, many landlords will prefer to sit and wait for more clarity before making a monumental business decision.
There is uncertainty in the economy, but this is a situation where demand for rental property increases. It is very unlikely that demand for rental property will diminish at any point in the near future, and demand is already outstripping supply.
Landlords who are in a position to further invest in their business have a chance to set themselves up for further success in years to come. This is also the opinion of Steve Olejnik; “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.”
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property or tax requirements, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.
You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.
