3 June 2016
3 June 2016,

George Osborne’s April stamp duty hikes were predicted to dampen the buy-to-let market – and make way for first-time buyers to get on the property ladder. However, if recent UK home purchases are anything to go by, landlords remain as enthusiastic as ever about property investment in the UK – and have simply adopted new strategies to ensure they get a great ROI.

If you’re looking for buy-to-let property for sale, and you want to counterbalance the increase in stamp duty tax, here’s some handy tips for you.

Property Investment Opportunities

  1. Buying a house at auction. Auction houses in London and the UK have noticed a surge in interest in property auctions – with many savvy landlords attending sales to bag a bargain. Auctioneers have noted that final purchasing prices are lower – as landlords are naturally bidding less to counterbalance the higher stamp duty taxes. In short, buying a house at auction is a good opportunity to get a property at a reduced price, which increases returns by a considerable margin.


  1. Buy, then sell on quickly. Another way in which property investors are making a good profit is through a process known as ‘flipping’. This involves purchasing a property that requires minimal improvement, then selling it on quickly for a profit. The best way to get a good return when flipping is to work with a property investment agent, who will be able to guide you in the direction of suitable property investment opportunities.


  1. Cheaper properties. Additionally, landlords are seeking lower priced properties outside of London, as stamp duty tax is considerably lower. When purchasing houses costing less than £125,000, you’ll only have to pay 3%, which reduces taxes significantly.


  1. Making connections. Some landlords have been deliberately partnering with construction experts – buying properties in need of serious structural or cosmetic attention as a partnership, then dividing the profits after they’ve sold it on. This arrangement is advantageous as it makes the most of both sets of expertise – your skills in property investment, and their expertise in construction.


Demand for Rental Property in the UK

Landlords remain enthusiastic about investing in property in the UK, irrespective of the increased stamp duty taxes. The main reason is that demand for rented accommodation shows no sign of abating – and average monthly rental yield continues to grow in most locations across the country.

When demand is high and potential for profit is good, it makes sense to invest in bricks and mortar – though of course, it’s recommended that you do your research first before committing to buy.

The Buy2Let Shop Limited

If you’re interested in buy-to-let property for sale, and you’d like to find out more about property investment in the UK, talk to The Buy2Let Shop. We’re a team of specialist property investment agents in London, and we’ll help you identify the perfect house for your specific needs.

We also offer assistance with buying a house at auction, and regularly host property investment seminars in London, which improve your knowledge of the property market. To find out more about our services, simply visit The Buy2Let Shop website today.

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