What has the stamp duty holiday done for property investment in the UK?

  • Fabrik Invest reports increased activity due to stamp duty holiday
  • Investors in Chatham Waters save over £100k in just over 3 months
  • First-time landlord numbers swelled by chance to save

As the stamp duty holiday draws to a close, property investment firm Fabrik Invest reports that the policy, which was introduced in July 2020, has done much to support investment in the UK property market. That investment is sorely needed; Hamptons reveals that the UK rental sector now has 250,000 fewer rental homes than it did at its peak back in 2017.

“The stamp duty holiday has delivered on a number of fronts after nearly a year of operation. It’s not just families seeking homes with more space who have been spurred into action – many investors have also seized on the opportunity to make a substantial saving.”

Dale Anderson, Managing Director, Fabrik Invest

The savings certainly have been substantial. Under the stamp duty holiday, anyone who buys a property and completes by 30 June 2021 doesn’t have to pay tax on the first £500,000 of its value. Fabrik Invest has seen investors rushing to take advantage of this. In a little over the past three months, investors in one development alone have saved more than £100,000 in stamp duty that would otherwise have been due.

The development in question is Chatham Waters in Kent. Just over half an hour from London by train and completed in November 2020, the one, two and three-bedroom homes offer waterfront living with a range of high-specification on-site amenities.

“In the last six months, our Chatham Waters investors have saved over £60,000 thanks to the stamp duty holiday. The biggest savers were first time buyers, with some having saved more than 50% of the stamp duty that they would otherwise have had to pay. The holiday has definitely supported more activity in the buy-to-let sector and encouraged some first-time landlords to get involved.”

Dale Anderson, Managing Director, Fabrik Invest

Interestingly, Hamptons has also noted the prominence of first-time landlords, with Head of Research Aneisha Beveridge noting that, “The stamp duty holiday has tempted more small and first-time landlords into buy-to-let, reversing a shift towards portfolio investors.” Low interest rates have also played a role in attracting new landlords to the sector – a shift that many see as vital to buy-to-let’s long-term appeal.

“The UK is struggling with a fundamental shortage of homes. Government policy has driven down the number of available rental properties over the past four years, despite continuing growth in the number of renters. It is our hope that those attracted to buy-to-let investment for the first time as a result of the stamp duty holiday will now remain within the sector and further increase the number of homes available to the UK’s renters.”

Dale Anderson, Managing Director, Fabrik Invest

 

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com