Landlords are still expanding their portfolios, despite extra Stamp Duty
The lettings market is one that is very much alive and kicking. Concerns about the extra Stamp Duty charges that were implemented earlier this year seem to have had little effect, as figures from HMRC confirm the tax has not deterred landlords from buying additional properties. As you will see, all stats have increased since the first quarter of this year…
HMRC looked at the number and value of transactions liable for Stamp Duty in Q2. During this period there were 213,700 transactions, up 8.7% from Q1 and 2.7% higher than the same time last year.
Of that total, 60,000 transactions fell into the additional property charge – up from 58,200 in Q1.
The overall Stamp Duty tax take in Q2 was £2.3bn, up from £2bn in Q1 - and the same as the end of last year. The additional Stamp Duty rate raised £503m for HMRC, up from £464m in Q1, and only slightly below the £525m taken at the end of last year.
The most popular price bracket for additional rate transactions were under £250,000, making up 39,000 of 115,300 sales. This was followed £250,000 to £500,000 (14,200 out of 72,800); £500,000 to £1m (5,100 out of 20,800); £1m to £2m (1,400 out of 3,800) and more than £2m (400 out of 1,000).
Landlords should also be encouraged by rental price growth. Bath has once again made the Top Five best growth areas outside of Greater London, according to Rightmove’s latest Rental Trends Tracker. Our City was also found to be the second best area for renters.
I’m looking forward to seeing what Q3 brings!