Demand from tenants is at an all time high. Many renters now share houses and flats in order to save a deposit for a purchase, which is understandably more common in London. 2015 ended with a 3.8% annual increase in asking rents outside London with the East of England leading with a 6.5% rise. London saw more modest growth of 0.5% possibly due to affordability for the most part. Renters are likely to see an injection of supply, as investors rush to complete sales before the stamp duty hike in April.
Stamp Duty to pay is as follows:
|Purchase price of property||Rate of Stamp Duty||Buy to Let/Additional Home Rate (from April 2016)|
|£0 – £125,000||0%||3%|
|£125,001 – £250,000||2%||5%|
|£250,001 – £925,000||5%||8%|
|£925,001 – £1.5 million||10%||13%|
This could act as a double-edged sword, as after the initial injection of properties to the market, a sudden slow down may follow, pushing rents up.