Extra stamp duty set to reduce number of lettings in UK, say agents

The extra stamp duty charge for the buy to let sector that begins next April has triggered a less optimistic outlook among letting agents in the UK.

Some 40% are predicting that rental supply will decrease over the next five years, the highest rate this year, according to the latest report from the Association of Residential Letting Agents (ARLA).

‘This month’s findings are triggered the Chancellor’s announcements around buy to let tax in his Autumn Statement. We said these changes would be catastrophic for the rental sector and this has been echoed by letting agents across the country,’ said David Cox, ARLA managing director.

‘The new stamp duty increases will make owning a buy to let property unprofitable for a lot of landlords, and certainly make new investors think twice about purchasing a buy to let,’ he added.

You can read the full article here on Property Wire

The good news for existing property investors is that a contraction in the supply will mean that rents are going up.

This of course is NOT good news for tenants as rents rise, landlords can pick and choose the tenant, and rents will rise.

Once again, it’s those on the edge of poverty that will suffer the most and increase in homelessness is likely to occur.

What do you think – are rents about to rise ?