Buy to Let Investors Pushing Property Prices in UK
The present actions of buy to let investors are pushing up property prices in the UK. Owing to the impending stamp duty to be enforced in April, the buy to let investors were already making preparations to counter the effects of the stamp duty. However, their counter measures have pushed prices in the region beyond the the reach of many ordinary people.
According to the latest residential market survey from the Royal Institution of Chartered Surveyors, as reported by PropertyWire, "This means that the near term pressure on prices is intensifying despite a higher level of supply and the survey continues to suggest that the recent increase in demand is due to a rush of buy to let investors looking to buy before the 3 percent stamp duty surcharge comes into effect in April."
However, 74 percent of the respondents expected there would be increases in buy to let purchases as supply picked up across UK, most notably in London where the increase had been significant with a net balance of +58 percent more noting an increase, according to the same report.
Meanwhile, Simon Rubinsohn, RICS Chief Economist, said, "How the tax changes planned for the buy to let sector over the next few years play out remains to be seen, but there are concerns raised in the survey that existing landlords will look to either gradually scale back on their portfolios or exit the market altogether as the more penal regime begins to bite."
An additional report from Press Telegraph revealed that the action of the investors to purchase property before the implementations of the new land and buildings transaction tax, Scotland's stamp duty replacement, is anticipated to be a reason in increased prices for the coming months.
In addition, Robert Grigg, Managing Director of Property Finance at Hampshire Trust Bank, added on to explain, "SME house builders are key and they need to examine different options for accessing financing and increasing Britain's housing stock. They have an important role in helping solve Britain's housing crisis and it's important we give them the best possible chance to do this."