£6,800 Boost for Stamford's First Time Buyers

There’s a whole legion of wannabe Stamford first-time buyers keen to get on the property ladder and they now have a 3% price advantage over the previously quicker responding army of Stamford landlords with cash at the ready.

Since the start of April, buy-to-let landlords have had to pay an additional 3% stamp duty so whilst demand from some Stamford buy-to-let landlords has dropped away, in the interim, it offers Stamford first time buyers (FTB’s) a chance to fill the vacuum with less competition from cash rich landlords (over two thirds of buy-to-let properties were purchased without a mortgage in the last 7 years) who could bid more and complete quicker.

Looking at the average value of a terraced house in Stamford currently standing at £229,100, that means if our Stamford FTB went up against a Stamford landlord, the landlord would have to pay an additional £6,873 in stamp duty.

Early anecdotal evidence from fellow property professionals in the town is suggesting landlords are reducing their offers slightly on Stamford properties to reflect the extra stamp duty.  

Whilst on the face of it, it appears landlords are being punished by No.11 Downing Street, I actually believe this increase in stamp duty for landlords is a good thing for the Stamford property market as a whole.

Since 2011/12, the Stamford property market has performed very well indeed. Over the last 12 months, £148,052,850 has been spent buying 530 Stamford properties.

Figures from the Land Registry have just been released and month on month in our council area, property values are 0.5% higher, yet 4.2% higher year on year. These figures are nowhere near the heady days of 2003 (April to be exact), when Stamford property prices rose by 32.5% in 12 months.

So as property values in Stamford (and the UK as whole) start to stabilise and come back to some kind of balance, I am beginning to see savvy landlords view the Stamford property market in a different light.

This stamp duty change has made more and more landlords, after reading the Stamford Property Market Blog www.rutlandandstamfordpropertyblog.co.uk take advice on what or not to buy and what to pay, meaning Stamford landlords are being more calculated with their Stamford buy-to-let purchases.

I am also seeing a variance between relatively brisk current price momentum and softer expectations in terms of property value growth in Stamford, this in part reflects amplified uncertainty about the short term economic outlook (e.g. Brexit, Issues in the Far East etc.).

Now I know a lot of Stamford landlords brought forward their buy-to-let purchases to beat the stamp duty deadline. However, it is probable that hunger from Stamford investors will return for the right Stamford property later in the year, especially if it’s at the right price and offers a decent yield.

 

In the meantime, Stamford FTB’s could and should, in the short term, make 'hay whilst the sun shines', plug the gap and grab a bargain!

 

For more advice and even where those buy-to-let bargains could be found visit The Rutland and Stamford Property Blog:-

www.rutlandandstamfordpropertyblog.co.uk