Mortgage lender Skipton International has advised buy-to-let property investors not to waste time if they want to benefit from the UK’s stamp duty holiday, which will run until the end of March 2021.
The arrival of Covid-19 in the UK earlier this year had a number of repercussions for the economy and particular sectors, including property.
During the spring lockdown, the housing market ground to an almost complete halt as viewings were suspended and people were temporarily confined to their homes for anything other than daily exercise and essential activities.
The government responded with a number of policy initiatives to reinvigorate the market, including a temporary stamp duty holiday, which raised the threshold at which buyers have to start paying stamp duty in England from £125,000 to £500,000.
As a result, nearly nine out of ten transactions are currently exempt from the tax, with average bills falling by £4,500.
However, buyers should be aware that the temporary change to the stamp duty rules will only be in effect until March 31st 2021.
This led mortgage lender Skipton International to urge any would-be buy-to-let property investors to act soon, to ensure they can benefit from the higher threshold.
People who are based overseas also need to consider that a 2% foreign resident surcharge will come into effect from April 1st 2021.
Jim Coupe, managing director of Skipton International, said: “Our mortgage team has been inundated with applications for UK buy-to-let purchases over the last few months.
“The low interest rates, combined with the stamp duty holiday in England, has seen a sharp increase in those looking to invest in good-quality property for letting purposes.”
Mr Coupe also pointed out that lockdown rules have led to some delays in surveyors and valuers being able to visit properties, further emphasising the need for investors to move quickly.