Recent changes to the property tax rules for first-time buyers could spell good news for anyone with a rental portfolio.
Up until recently, a ‘stamp duty holiday’ was in place, meaning first-time buyers could purchase a home without having to pay that form of property tax.
On March 25th, that ended, meaning first-time buyers once again have to pay stamp duty on their first home at the appropriate rate.
Figures from the Office for National Statistics show the immediate impact this has had on the housing market, based on sales data from March and April.
In March, 43% of all homes sold were bought by first-timers, potentially boosted even higher by those bringing their transaction forward to beat the stamp duty deadline.
During April, just 32% of property sales were to FTBs, suggesting that more will be remaining in rental properties in the months to come.
After a period of considerable turbulence in the property tax system, and in new housebuilding activity, the return to more ‘normal’ conditions is likely to be welcomed by those with second homes to rent out.