The demand for buy-to-let properties has increased hugely as people rush to take advantage of current stamp duty rates before the changes come into effect on April 1st. The new rules after this date mean that buy-to-let properties will cost more. The pressure has been on for those looking for a buy-to-let property to seal the deal before the start of April.
House-Price Boom
House prices in England have been rising steadily over the last few years, with the biggest boom seen in London and the South East. Prices are not so healthy in Wales and Scotland, with a stagnant market north of the border and a small decrease of 0.3% in Wales.
For those looking to buy a house in Gloucester, the house-price rise has pushed many potential purchasers out of the market. This has meant a greater number of properties being rented out as singles and families choose renting over buying, not only through the desire for freedom but more often due to the inability to get a foot on the housing ladder because of the boom in house prices and drop in availability.
Estate agents such as http://www.tgres.co.uk/for-sale/ are seeing fewer and fewer houses come to the market at more affordable end of the price scale. Property prices are increasing across England at a rate of around 10% per year, which is a rise that is five times faster than average salary increases.
Stamp Duty Changes
The changes to stamp duty after April 1st mean that supplementary rates will be charged on additional homes. This has sent would-be landlords rushing to complete their sales before the deadline.
However, many people are worried about the surge in buy-to-let properties. Mortgage approvals rose by 20% in February compared with the same month last year. People are concerned that this buy-to-let boom will contribute to the cycle of renters unable to buy a property due to rising costs and diminishing numbers of properties available.
There is currently a large difference in supply and demand for housing, with more people looking for properties than there are houses available. This has meant that many people are forced to rent instead of buying. The buy-to-let market is surging ahead as more people look to take advantage of the house-price boom and surge in the number of renters.