New Stamp Duty Charge Will Push Up Rents Claim Letting Agents

New research has found that over half of all UK letting agents believe the new stamp duty surcharge on buy to let properties will push up rents.  52% of letting agents reported increased interest from buy to let investors before the new stamp duty charges come into force in April.  After 1st April, 63% of letting agents believe supply will fall as landlords are pushed out of the market. 57% of ARLA members agree that rents will be pushed up with 73% of London letting agents expecting to see this happening.  David Cox, ARLA Managing Director, says “Although members are reporting a rush from landlords trying to snap up their buy to let investments now, it’s likely that we’ll see the buy to let market drop like a stone come April and probably not pick up again until next year.  This will most certainly cause rents to increase, with supply dropping, as competition for the limited availability of properties intensifies.  The demand for housing continues to intensify as supply remains as issue across most of the country.  We are concerned that the government rhetoric of wanting to help people onto the housing ladder does not tally with their action of continuing to target the rental market with additional costs.”

 

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