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Good news for Landlords

December 19th 2014
By: Jon
Good news for Landlords

Buy to Let Landlords are able to benefit greatly when they expand their portfolios with news of the recent reduction in Stamp Duty.

Using CML data it is possible to calculate the value of the average buy-to-let mortgage being used to purchase a property - as opposed to remortgaging an existing one - at £124,000. Assuming a typical borrowing equal to 60% of the property price gives an average purchase price of £200,000.

Stamp duty savings between the old and now new levels will be about £500 per transaction. This gives a total annual saving on landlord purchases, assuming they continue at the current rate, of around £50m.  The biggest body representing the private rented sector, the National Landlords Association has said that the savings are a 'big win'.

A spokesman said, 'This is welcome news and is something the NLA have been lobbying hard on for years. The introduction of a straightforward marginal system of taxation will mean private landlords will now not only face lower costs when acquiring property, but also have funds to implement property improvements and keep rents down.'

'For the buy-to-let investor this could mean both a bigger and faster return on their investment and extra capital to invest in improving the condition of their property.'
If you would like to find out more about the properties we have available for investments, why not give us a call on 020 8652 2929 and see how we can help.