House buyers looking out of London
According to new data released Monday, a real estate tax hike was made in the UK last year. After this increase, London owners began to invest outside the British capital.
Almost three of the five landlords in London have been investing outside London for the past 12 months. Stamp tax that entered into force last year in the UK increased property prices in the center of London. For this reason, London investors began to invest outside London.
In 2016, the British government had received a 3 percent stamp duty on second home purchases. The tax led investors and landowners in the capital to move their rent portfolios out of the city.
“Following the tax hike, landlords have been adapting their strategy to find new ways to make their returns,” said Aneisha Beveridge, head of research at Hamptons International.
“Lower entry costs and higher yields outside of the capital are enticing investors to look further afield,” Ms. Beveridge added.
According to the Hamptons International survey, the 2016 tax rate roughly doubled the average rent investors paid as a total stamp duty fee.
In recent years more affordable housing in the UK Midlands has become particularly attractive for rent investors. Over one-third of London’s landlords bought a house to rent in that part of the country during last year.
Sevdenur Demir / [email protected]