Fewer people purchasing buy-to-lets
Significantly fewer people acquired buy-to-let properties in Q3 2018, HMRC figures have showed.
Additional properties, for which stamp duty land tax is payable at the standard rate plus 3%, have seen a fall of 11% (7,400) compared to the same period in 2017.
And Hamptons showed that the number of homes bought by landlords had dropped by a third over the last three years with a 13% decrease last year alone.
Michael Lynn, chief executive at Relendex, said: “Property remains an investable asset class, however there is a trend borne out by these figures that people are moving away from investment in buy-to-let.
“There are several reasons for this including the higher rate of stamp duty land tax, the lack of access to funds and the uncertainty caused by Brexit.
“These factors all leave investors looking for new and innovative ways to maximise their savings. Peer-to-Peer allows lenders to invest in specific property projects and access their money when they want it through an active resale market.
“What’s more, lenders can get high returns on their money, on average 8%, whilst having the security of knowing that they have invested in a stable asset. It is important that Peer-to-Peer investment properties are treated with the same care and attention that would be put into a buy-to-let.
“Loans should be secured on the properties themselves and have a loan to value ratio which safeguards the investment and that money will be paid back.
“If this is done correctly Peer-to-Peer allows lenders to get the returns associated with buy-to-let without having the hassle of managing the property themselves.”
The higher rate stamp duty land tax was introduced in 2016 for those purchasing second properties which includes buy-to lets.
Between Q2 and Q3 2018 additional dwellings transactions increased by 7% to 58,400. Compared to last year, it has fallen by 11% (7,400).
For the last four quarters additional dwellings have made up about 24% of all liable transactions and have generally increased as a proportion of residential transactions.