When the news broke that Stamp Duty is set to rise in April 2016 inevitably there were gasps from Landlords and Letting Agents across the country.  Questions were asked locally whether or not this would kill the buy-to-let market in the Western Wards.

The reality, however, is that more prospective investors have come through my door in the last 10 days than I can care to remember in recent years.  Not only have I had many conversations with a lot of my existing Landlords who are considering adding to their portfolios prior to April. But interestingly I have spoken with many first time Landlords who have made the decision to dive in off the back of George Osborne’s announcement three weeks ago.

Of course this mini-stampede will most likely only continue until the new rates come in to force.  But the feedback I have been receiving, especially from my established Landlords, has been positive.  After all stamp duty has always been factored in to these Landlords’ yield calculations anyway.  Most of them will diversify with their investments when the deadline passes if the yields become unattractive.

The best deal I have seen this week for those active Landlords is a one bedroom apartment in Park Gate which is currently let out at £725pcm.  The current owner would trade at £145,000 with the Tenant remaining in residence.  With minimal monthly maintenance charges of £85, and factoring in the current stamp duty, the net yield works out at a fraction over 5%.

Whilst we are all still slightly unsure exactly how much impact the changes will effect buy-to-let investment in Locks Heath and the surrounding areas after April. One thing we can be sure of is that the next four months are set to be a busy time.

If you would like some advice about buying to let, whether you are an established Landlord or someone thinking of investing, please come in and see me at our office in Middle Road, Park Gate or call me on 01489 570011.