The stamp duty holiday has encouraged a lot of people to think about buying a home, but it is not as if demand for rental property is diminished. Even with further assistance, many people cannot afford to step on the property ladder, and there will always be people who don’t want to own property.
This ensures there is significant demand for rental property in London, and areas like Hackney. Also, with the stamp duty holiday in place, landlords can expand their property portfolio at a lower cost.
Landlords need to pay the additional stamp duty charge of 3%, but the stamp duty holiday reduces the overall amount they pay, which is great news.
According to Rightmove, as of October 2020, “Properties in Hackney had an overall average price of £618,305 over the last year.”
Without the stamp duty holiday in place, landlords are required to pay £39,464.40 in stamp duty fees. With the stamp duty holiday in place, the stamp duty fee for a landlord buying additional property is £24,464.40.
This is a significant saving, and it should improve the expected rental yield a landlord receives from the property.
At Sovereign House, we are delighted to say we have worked closely with many landlords in and around Hackney. We can help you find your ideal rental property, connect with tenants, vet tenants and manage rental property. Whatever assistance you need to achieve success in the Hackney lettings market, we are here for you.
If you do plan on adding to your property portfolio, you will not be alone. A new study by Rightmove suggests 25% of buy-to-let (BTL) landlords plan to increase their rental property portfolio in 2020.
The property portal provided the following points of interest to those in the housing and rental sector:
The company experienced a peak of email and phone enquiries on Monday 6 July
Rental demand is 40% higher than it was for July 2019
Asking rents outside of the capital reached £845 per month, a new high
This level of asking rents is an increase of 3.4% on July 2019
This level of asking rents is the highest annual rate since the second quarter of 2016
Levels of total available stock in London has increased by 41% compared to July 2019
During lockdown, new rental listings fell by an average of 50%, but now, new rental listings are up 1% on the July 2019 figures
The total available rental stock is also up by 1% on the July 2019 figures
Overall rental demand is recognised as being at a record high level, and many industry experts believe this will increase price pressure
Rightmove’s commercial director and housing market analyst Miles Shipside said: “The pause in the rental market has led to some distorted figures over the past few months, especially in cities where landlords with short-term lets made the swap to instead try and find a long-term tenant. Both rents outside London and demand being at a record high isn’t good news for many tenants looking to move right now, especially as we know there will be even more competition for those attractive properties with more space, bigger gardens and a spare room.”
These are challenging times in the rental market, but there is activity and demand for homes. At Sovereign House, we are keen to help you with whatever you need in the Hackney lettings market. Why not call us on 020 8985 5800 or visit us at 213 Victoria Park Road, we look forward to assisting you with your property needs.