What has the stamp duty holiday done for property investment in the UK?

As the stamp duty holiday draws to a close, property investment firm Fabrik Invest reports that the policy, which was introduced in July 2020, has done much to support investment in the UK property market. That investment is sorely needed; Hamptons reveals that the UK rental sector now has 250,000 fewer rental homes than it did at its peak back in 2017.

Dale Anderson, Managing Director, Fabrik Invest said: “The stamp duty holiday has delivered on a number of fronts after nearly a year of operation. It’s not just families seeking homes with more space who have been spurred into action – many investors have also seized on the opportunity to make a substantial saving.”

The savings certainly have been substantial. Under the stamp duty holiday, anyone who buys a property and completes by 30 June 2021 doesn’t have to pay tax on the first £500,000 of its value. Fabrik Invest has seen investors rushing to take advantage of this. In a little over the past three months, investors in one development alone have saved more than £100,000 in stamp duty that would otherwise have been due.

The development in question is Chatham Waters in Kent. Just over half an hour from London by train and completed in November 2020, the one, two and three-bedroom homes offer waterfront living with a range of high-specification on-site amenities.

Interestingly, Hamptons has also noted the prominence of first-time landlords, with Head of Research Aneisha Beveridge noting that, “The stamp duty holiday has tempted more small and first-time landlords into buy-to-let, reversing a shift towards portfolio investors.” Low interest rates have also played a role in attracting new landlords to the sector – a shift that many see as vital to buy-to-let’s long-term appeal.