With April only a couple of months away, the 3% increase in stamp duty on buy-to-let properties that comes into effect on the 1st of that month is already creating a rush for buy-to-let properties. Eager to avoid the 3% hike on second homes, buy-to-let investors are effectively bombarding the market at the moment to close new deals.
Investors in London stand to be the hardest hit by the stamp duty increase and savvy investors are now looking towards prime city centre developments and purpose-built student accommodation in the regions to make the most of their investments. In these particular asset classes the attractiveness of the yields that can be achieved still outweighs the hike in stamp duty.
Experienced investors will be examining their portfolios over the next couple of months and putting together their investment game plans after the increase has taken place. It will be interesting to see how the buy-to-let market reacts to this change and the direction investors take.
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