Stamp Duty increase likely to benefit the Northern housing market say experts
The UK’s buy-to-let housing market is likely to expect a shift towards the North, following the Chancellor’s announcement of a Stamp Duty increase for property investment purchases in yesterday’s Autumn Statement.
With higher property prices and lower rental returns already leading many property purchasers to leave London and the South East, the increased Stamp Duty charge is expected to force many investors to look elsewhere in the UK, as the affordability window in the South has now been closed for many.
The average property price in the North is now more than £150,000 lower than the average property price in the South, industry experts are predicting that the South, where the buy-to-let market has traditionally flourished, will feel the greatest pressure as investors look towards the North as an alternative.
With rental returns on properties usually higher in the North, whilst also offering a lower purchase price, it is expected that the North’s natural market structure will have greater appeal for those investors looking to leave the property investment market in the South in the wake of the changes to Stamp Duty.
As well as limiting the effects of the changes, due to arrive in April 2016, the North is also scheduled to enjoy more than £7 billion worth of investment in the coming years, as a part of the Northern Powerhouse programme. This will see the Government invest in the North’s infrastructure, providing more power to major cities such as Manchester, Leeds and Sheffield.
As a drastic change is set to take hold in the Northern housing market, it is expected that property investors will capitalise on this growing region.
To discover more about the impact that the Stamp Duty changes will have on the UK property market, and how property investors can capitalise on the changes, comments from UK property market experts.