Market Insight - August 2016
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After Brexit

Highs and Lows
Three months after the new stamp duty charge was introduced, we are beginning to get a clearer picture of its effects.

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In the first three months of the new stamp duty era, landlord purchases accounted for only 8 per cent of homes bought in Great Britain, the lowest quarterly proportion since 2010 and 5 percentage points lower than the same period last year.

This comes following the surge in activity in the first quarter of the year, where landlords accounted for 18 per cent of home buyers, the highest proportion seen since our records began in 2010, as they raced to complete purchases before the stamp duty change came in place on the 1st of April.

All regions saw a decline in the proportion of homes sold to landlords with the biggest falls seen in Northern and Midlands market. The South East and South West both saw the proportion of homes sold to landlords more than halve between the first and second quarter, falling from 18 per cent to 7 and 9 per cent respectively. In the capital, the proportion fell from 17 per cent to 8 per cent.

Landlords bringing forward purchases will account for a large part of the falls seen in the quarter but upcoming changes to mortgage tax relief and the prospect of heightened uncertainty in the economy during the lead up to the referendum will also have played on their minds before thinking of entering the market.

April saw the biggest shift in proportion, falling from a record high of 23 per cent in March to just 7 per cent. However, since the proportions have started to slowly climb up with landlords making up 8 per cent of homes sold in June.

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