20% rise in ads for rental property
There was a significant rise in new rental properties being listed in the week of the Stamp Duty hike, with a fifth (20.6%) more properties being advertised compared to the previous week, according to research by property crowdfunding platform Property Partner.
Telford in the West Midlands saw the biggest jump, with rental listings up almost 160% in the week of the tax hike deadline, compared to the previous week, and in Stevenage new ads almost doubled.
Of the major cities, London saw new rental property listings up 19.4% between 28th March and 3rd April, compared to the previous week. While, in Manchester and Birmingham, new rental ads were up 28.7% and 49.9% respectively.
Dan Gandesha, CEO of Property Partner, said: “Inevitably there was a final rush by investors to complete on property purchases ahead of the 1st April stamp duty surcharge deadline.
“More rental properties on the market is good news for tenants, but sadly this looks like a temporary blip. The savings landlords have made may turn into losses further down the line. Future cuts to mortgage interest tax relief and likely interest rate rises, could wipe out profits and force many landlords to sell up.”