Talking property with Michael Cook of Romans Lettings
News and views from our local agents. This week, MICHAEL COOK, managing director of Romans Lettings,
News and views from our local agents. This week, MICHAEL COOK, managing director of Romans Lettings, discusses the likely implications of the chancellor George Osborne’s recent budget
FROM next Friday (April 1) there will be a three per cent surcharge on each stamp duty band where the property is being purchased as a buy-to-let investment or as a second home.
That means that for properties worth between £125,000 and £250,000, where the stamp duty is two per cent, buy-to-let landlords will pay five per cent, and for properties worth more than £250,000 and up to £925,000, where the stamp duty is five per cent, buy-to-let landlords will pay eight per cent.
We’ve seen a lot of evidence recently that the stamp duty reforms are not stopping investors from purchasing more properties.
At one of our new homes developments, which had a range of appartments, the first three phases sold out extremely quickly with 74 per cent of the apartments selling to investors, regardless of the fact that there is no guarantee the completion dates will be prior to the stamp duty reforms â€” demonstrating that investors are not deterred.
Furthermore, according to HomeLet’s latest rental index, average rental values in the South East have increased by 6.5 per cent, when compared to the same period last year.
And over the next 12 months we predict rental price increases of at least five per cent and house price rises of five to 10 per cent in this area, with house price rises of approximately 25 per cent in the next five years.
With more and more tenants moving to the local area there is an ongoing demand for rental properties and I cannot see this slowing down any time soon.
For more advice on buy-to-let, I’d advise anyone to pop into your local Romans branch in Hart Street, Henley.