The Association of Residential Letting Agents 'ARLA' have commented on the new stamp duty increase, claiming that the increase will also lead to a decline in the amount of available properties to renters.
Many landlords have attempted to beat the deadline and we have seen a sharp increase in the amount of landlords looking for properties. After the deadline, two thirds of ARLA agents predict that supply will fall as landlords are pushed out of the market.
Of all the ARLA members, 57% agree rents will be pushed up once the stamp duty reforms have come in to effect, largely down to the increased costs to landlords being passed on.
â€œThe stamp duty changes are now imminent and as well as hitting small landlord's, they will also impact institutional investors. Although members are reporting a rush from landlords trying to snap up their buy to let investments now, it's likely that we'll see the buy-to-let market drop like a stone come April and probably not pick up again until next year. This will most certainly cause rents to increase, with supply dropping, as competition for the limited availability of properties intensifiesâ€ says David Cox, managing director of ARLA.
Tenant demand rose by nearly 20% in February, with an average 37 prospective tenants registered per member branch. This is the highest level seen since February last year, with an average 40 tenants