Buy-to-Let Investment Portfolios and Their Owners Could Benefit from Stamp Duty Waiver

The recent decision by the government to waive stamp duty on properties valued at £175,000 and under could benefit those landlords who still have money to spend. Of course, first time buyers do not fall into this category, but established buy-to-let investors might finally be able to breathe easy when it comes to juggling debt with income and trying to come out on top.

First time buyers are faced with a double-edged sword since mortgage rates are still considerably high and mortgages themselves are considerably difficult to obtain for the first time buy-to-let investor. Established landlords on the other hand have established relationships with lenders and a greater likelihood of snagging a buy-to-let mortgage.

In the past, only properties valued at £125,000 and under could benefit from stamp duty exemption. It is important to note that this stamp duty holiday is a limited time offer of 12 months in all. Nonetheless, this provides an excellent window of opportunity for buy-to-let investors who are looking for new investment properties.

Additionally, since property values have come down since their heyday, established landlords can benefit from lower purchase prices as well as lower monthly outlay for their buy-to-let mortgages. Between lower prices and the savings realized from the stamp duty holiday, buy-to-let investors could stand to profit a decent amount, at least for the next 12 months or so. Exercising caution is still advisable since the market is still quite volatile.