Rental growth halves in first year after Stamp Duty changes

The newly imposed Stamp Duty rise was a major contributing factor to the falling rental growth in England over the past year according to the latest research. The new tax rise has made the cost of renting remain pretty much static over the past 12 month which is hitting landlords in the pocket. The development of high quality rental properties remains a policy that needs further encouragement by the government if we are to see the market get back on course.

Key Takeaways:

• Rental property in UK has slowed drastically between March 2016 and March 2017
• The slowing is being blamed on the Stamp duty surcharge and changes to mortgage interest tax relief. Other factors include stricter underwriting criteria and a pending ban on letting agent fees.
• High quality, affordable rental properties are needed, as well as support by all sectors, including government in order to prevent further slowing and balance the housing market.

"While the figures suggest that the Government has had some success in its efforts to rebalance, policy makers should be wary of imposing any further regulation."

Read more: http://www.propertyindustryeye.com/rental-growth-halves-in-first-year-of-stamp-duty-changes/